Daily Gold News: Thursday, July 7 – Gold Extended its Sell-Off

Gold Price Recap

The gold futures contract lost 1.55% on Wednesday, July 6, as it extended its Tuesday’s sell-off of 2.1%. The yellow metal’s price reacted to rallying U.S. dollar, among other factors. Yesterday’s daily low was at 1,730.70 and this morning gold is trading along yesterday’s closing price, as we can see on the daily chart (the chart includes today’s intraday data):

Precious Metals Price Action

Gold is 0.3% higher this morning, as it is trading below the $1,750 level. What about the other precious metals? Silver is 1.1% higher, platinum is 2.5 % higher and palladium is 3.3% higher. So the main precious metals’ prices are lower this morning.

Fundamentals and Projections after NFP

Yesterday’s JOLTS Job Openings number release has been higher than expected at 11.25M. Today we will get the Unemployment Claims and Trade Balance releases, among others.

The markets will still continue to react to the ongoing Russia-Ukraine war news.

Where would the price of gold go following tomorrow’s monthly Nonfarm Payrolls announcement? We’ve compiled the data since September of 2018, a 46-month-long period of time that contains of forty six NFP releases. The first chart shows price paths 5 days before and 10 days after the NFP release. The last three cases are marked with dashed lines. Gold lost 0.52% in June and in May it lost 2.16%.

The following chart shows the average gold price path before and after the NFP releases for the past 46 months. The market was usually advancing ahead of the release day and closing 0.36% higher on the 10th day after the NFP release.

Economic News Schedule

Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days.

Thursday, July 7

• 7:30 a.m. U.S. – Challenger Job Cuts y/y
• 8:30 a.m. U.S. – Unemployment Claims, Trade Balance
• 1:00 p.m. U.S. – FOMC Member Bullard Speech, FOMC Member Waller Speech

Friday, July 8

• 7:55 a.m. Eurozone – ECB President Lagarde Speech
• 8:30 a.m. U.S. – Non-Farm Employment Change, Unemployment Rate, Average Hourly Earnings m/m
• 8:30 a.m. Canada – Employment Change, Unemployment Rate
• 10:00 a.m. U.S. – Final Wholesale Inventories m/m
• 11:00 a.m. U.S. – FOMC Member Williams Speech
• 3:00 p.m. U.S. – Consumer Credit m/m

Paul Rejczak
Stock Trading Strategist
Sunshine Profits: Analysis. Care. Profits.

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