This morning the U.S. Bureau of Labor Statistics released the nonfarm payroll employment report for December at 8:30 AM ET. There was an immediate and strong knee-jerk reaction to this report’s release. 

Editor’s note: In tomorrow’s video report we will detail the thought process behind the trade alert we sent out earlier. This will include our expectations and upside target if we are correct. It will also include the logic of our stop placement. 

Today gold prices fell significantly down just over $30, the largest percentage decline in over three weeks. As of 5:30 PM EST gold futures basis the most active February contract is fixed at $2042.80 after factoring in today’s decline of -1.48%, or $30.60.

An interesting start for the first trading day of 2024. In overseas trading, gold rallied trading to a high of $2088. These gains were short-lived once trading moved to the United States as dollar strength reversed the strong gains witnessed earlier. Gold futures traded to a low of $2064, before recovering.

Editor's Note:

As of 4:20 PM EST, gold futures basis the most active February 2024 futures contract is currently up by $9.80 and fixed at $2089. That is just a few dollars below one of the highest closing prices of $2091 that occurred on Friday, December 1.

Investors continue to be optimistic that the Federal Reserve will begin a series of rate cuts throughout 2024. The real question is not if the Fed will cut rates next year, but when they will begin and how deep the interest rate cuts will be. Analysts are split as to when the Federal Reserve will implement its first rate cut next year.

This morning, the US Bureau of Economic Analysis released the PCI index for November. As this report is the preferred inflation measure of the Federal Reserve, it garners our attention. The report revealed that headline inflation in November rose by 2.6% on an annual basis, well below economic expectations of 2.8%.

Today, the BEA (Bureau of Economic Analysis) released its third and final estimate for third quarter GDP. The report revealed that GDP increased at an annual rate of 4.9%, which is a downward revision from the previously reported numbers, which came in at 5.2%.