Daily Gold News: Wednesday, Sep. 22 – Gold Calm Ahead of FOMC

The gold futures contract gained 0.82% on Tuesday, as it extended its rebound following last week’s Thursday’s decline of 2.12%. On Thursday, it broke below the recent local lows as series of the U.S. economic data releases along with the rallying U.S. dollar led to a sell-off in precious metals. The yellow metal came back to $1,750 price level. This morning the market is retracing some of yesterday’s advance, as we can see on the daily chart (the chart includes today’s intraday data):

Today gold is 0.1% lower, as it is trading along $1,770 price level. What about the other precious metals? Silver is 1.1% higher, platinum is 1.5% higher and palladium is 3.4% higher. So precious metals’ prices are mixed this morning.

Yesterday’s Housing Starts/ Building Permits releases have been better than expected. The markets will be waiting for today’s FOMC Monetary Policy Statement release at 2:00 p.m. and the FOMC Press Conference at 2:30 p.m. We will most likely see an increase in volatility.

Where would the price of gold go following the FOMC release? We’ve compiled the data since January of 2017, a 54-month-long period of time that contains of thirty eight 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 July 28. Gold price was 1.4% higher 10 days after the release.

The following chart shows average gold price path before and after the FOMC releases for the past 38 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 0.51% 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, September 22

  • 10:00 a.m. U.S. – Existing Home Sales
  • 2:00 p.m. U.S. – FOMC Statement, Federal Funds Rate, FOMC Economic Projections
  • 2:30 p.m. U.S. – FOMC Press Conference
  • Tentative, Japan – BOJ Press Conference
  • All Day, Japan – Bank Holiday

Thursday, September 23

  • 3:30 a.m. Eurozone – German Flash Manufacturing PMI, German Flash Services PMI
  • 7:00 a.m. U.K. – Monetary Policy Summary, Official Bank Rate, Asset Purchase Facility, MPC Asset Purchase Facility Votes, MPC Official Bank Rate Votes
  • 8:30 a.m. U.S. – Unemployment Claims
  • 9:45 a.m. U.S. – Flash Manufacturing PMI, Flash Services PMI
  • 10:00 a.m. U.S. – CB Leading Index 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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