The gold futures contract lost 0.14% on Monday, as it continued to trade within a 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 below $1,800, as we can see on the daily chart (the chart includes today’s intraday data):
Today gold is virtually flat, as it is extending a consolidation. What about the other precious metals? Silver is 0.2% lower, platinum is 1.0% lower and palladium is 1.0% lower. So precious metals’ prices are lower this morning.
Yesterday’s New Home Sales release has been worse than expected at 676,000. Today we will get the CB Consumer Confidence and Durable Goods Orders releases.
The markets will be waiting for tomorrow’s FOMC Statement announcement.
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:
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
Thursday, July 29
- 8:30 a.m. U.S. – Advance GDP q/q, Advance GDP Price Index q/q, Unemployment Claims
- 10:00 a.m. U.S. – Pending Home Sales m/m
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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All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.