Daily Gold News: Wednesday, July 28 – Markets Awaiting FOMC Statement Release

The gold futures contract gained 0.03% on Tuesday, as it further 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 along $1,800 again, 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 0.4% higher, platinum is 0.1% higher and palladium is 0.2% higher. So precious metals’ prices are mixed this morning.

Yesterday’s CB Consumer Confidence release has been better than expected at 129.1.

The markets will be waiting for today’s FOMC Statement announcement.

Where would the price of gold go following the 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:

Wednesday, July 28

  • 8:30 a.m. U.S. – Goods Trade Balance, Preliminary Wholesale Inventories m/m
  • 8:30 a.m. Canada – CPI m/m, Core CPI m/m, Common CPI y/y, Median CPI y/y, Trimmed CPI y/y
  • 2:00 p.m. U.S. – FOMC Statement, Federal Funds Rate
  • 2:30 p.m. U.S. – FOMC Press Conference

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.

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

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