Daily Gold News: Wednesday, May 4 – Gold Price Fluctuates Ahead of Today’s FOMC Release

Gold Price Recap

The gold futures contract gained 0.38% on Tuesday, May 3, as it retraced some of its Monday’s decline. On Monday gold sold off by 2.5% on strengthening U.S. dollar, stock markets’ declines. The market remains below the $1,900 level. This morning gold is trading along its 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 0.1% lower this morning, as it is trading above the $1,850 price level. What about the other precious metals? Silver is unchanged, platinum is 1.6% higher and palladium is 0.5% higher. So the main precious metals’ prices are virtually flat this morning.

Gold Fundamentals and Economic News Schedule

Yesterday’s JOLTS Job Openings has been higher than expected at 11.55M. Today we will get the important FOMC Monetary Policy release at 2:00 p.m. We will also get the ADP Non-Farm Employment Change release at 8:15 a.m.

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

Where would the price of gold go following today’s Fed release? We’ve compiled the data since January of 2017, a 62-month-long period of time that contains of forty three 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 March 16. Gold price was 1.6% higher 10 days after the release.

The following chart shows average gold price path before and after the FOMC releases for the past 43 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 0.68% 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, May 4

  • 8:15 a.m. U.S. – ADP Non-Farm Employment Change
  • 8:30 a.m. U.S. – Trade Balance
  • 9:45 a.m. U.S. – Final Services PMI
  • 10:00 a.m. U.S. – ISM Services PMI
  • 2:00 p.m. U.S. – FOMC Statement, Federal Funds Rate
  • 2:30 p.m. U.S. – FOMC Press Conference
  • All Day, Japan – Bank Holiday

Thursday, May 5

  • 7:00 a.m. U.K. – BOE Monetary Policy Report, MPC Official Bank Rate Votes, Monetary Policy Summary, Official Bank Rate
  • 7:30 a.m. U.S. – Challenger Job Cuts y/y
  • 8:30 a.m. U.S. – Unemployment Claims, Preliminary Nonfarm Productivity q/q, Preliminary Unit Labor Costs q/q
  • 9:30 p.m. Australia – RBA Monetary Policy Statement
  • All Day – OPEC-JMMC Meetings

For a look at all of today’s economic events, check out our economic calendar.

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

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