The gold futures contract lost 0.20% on Friday, as it extended its consolidation along $1,800 price level. On July 15, the market has reached a local high of $1,835. Since then it has been going sideways. This morning gold is trading slightly higher, as we can see on the daily chart (the chart includes today’s intraday data):
Today gold is 0.3% higher, as it remains above $1,800. What about the other precious metals? Silver is 0.7% higher, platinum is 0.7% higher and palladium is 0.7% higher. So precious metals’ prices are higher this morning.
Friday’s U.S. Flash Manufacturing PMI, Flash Services PMI releases have been mixed. Today we will get the New Home Sales release at 10:00 a.m. But the markets will be waiting for tomorrow’s CB Consumer Confidence and Wednesday’s FOMC Statement releases
Where would the price of gold go following Wednesday’s FOMC news? We’ve compiled the data since January of 2017, a 53-month-long period of time that contains of thirty six FOMC releases. The first chart shows price paths 5 days before and 10 days after the FOMC release. The latest FOMC Statement release came out on June 16. Gold price was 4.8% lower 10 days after the release.
The following chart shows average gold price path before and after the FOMC releases for the past 36 releases. The market was usually declining ahead of the FOMC day. Then it was going up for a week-long period. We can see that on average, gold price was 0.49% higher 10 days after the FOMC Statement announcement.
Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days:
Monday, July 26
- 4:00 a.m. Eurozone – German ifo Business Climate
- 10:00 a.m. U.S. – New Home Sales
Tuesday, July 27
- 3:30 a.m. Japan – BOJ Governor Kuroda Speech
- 8:30 a.m. U.S. – Durable Goods Orders m/m, Core Durable Goods Orders m/m
- 9:00 a.m. U.S. – HPI m/m, S&P/CS Composite-20 HPI y/y
- 10:00 a.m. U.S. – CB Consumer Confidence, Richmond Manufacturing Index
For a look at all of today’s economic events, check out our economic calendar.
Stock Selection Strategist
Sunshine Profits: Analysis. Care. Profits.
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