Gold Price Recap
The gold futures contract lost 0.1% on Wednesday, May 4, as it extended a short-term consolidation following the recent declines. Gold bounced after the FOMC interest rate decision announcement but then it retraced the whole advance. This morning the yellow is trading higher again, as we can see on the daily chart (the chart includes today’s intraday data):
Precious Metals Price Action
Gold is 0.9% higher this morning, as it is trading close to the $1,900 price level. What about the other precious metals? Silver is 0.1% lower, platinum is 0.7% lower and palladium is 0.3% lower. So the main precious metals’ prices are higher this morning.
Yesterday’s ADP Non-Farm Employment Change release has been lower than expected at +247,000 (vs. the expected +382,000). Today we will get the Unemployment Claims release, among others. The market will be waiting for tomorrow’s monthly jobs data announcement.
The markets will continue to react to the ongoing Russia-Ukraine war news.
Where Would the Price of Gold Go Following Yesterday’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.
Economic News Schedule
Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days.
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
Friday, May 6
- 8:30 a.m. U.S. – Non-Farm Employment Change, Unemployment Rate, Average Hourly Earnings m/m
- 8:30 a.m. Canada – Employment Change, Unemployment Rate
- 9:15 a.m. U.S. – FOMC Member Williams Speech
- 3:00 p.m. U.S. – Consumer Credit m/m
For a look at all of today’s economic events, check out our economic calendar.
Stock Trading Strategist
Sunshine Profits: Analysis. Care. Profits.
* * * * *
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.