The gold futures contract gained 0.20% on Wednesday, as it retraced the whole of its last week’s decline. In late November the market has reached a new low after breaking below local lows along the price level of $1,850. Today gold is breaking above the previous local high following yesterday’s FOMC release, as we can see on the daily chart ( the chart includes today’s intraday data ):
Gold is 0.7% higher this morning, as it is extending its short-term advance following weakening U.S. dollar. What about the other precious metals? Silver gained 1.66% on Wednesday and today it is 1.7% higher. Platinum lost 0.38% and today it is 1.8% higher. Palladium gained 1.04% yesterday and today it’s 1.0% higher. So precious metals are higher again this morning .
But the markets were waiting for the FOMC Statement announcement.
Where would the price of gold go following yesterday’s Fed news release? We’ve compiled the data since January of 2017, a 47-month-long period of time that contains of thirty two FOMC releases. The first chart shows price paths 5 days before and 10 days after the FOMC release. We can see that the biggest 10-day advance after the NFP day was +10.5% after March 15, 2020 release and the biggest decline was -7.2% after March 3, 2020 release. But we’ve had an increased volatility following coronavirus fear then.
The previous FOMC Statement release came out two days after the U.S. Presidential Election, on November 5 th . Gold price was 4.4% lower 10 days after the release.
The following chart shows average gold price path before and after the FOMC releases for the past 47 months and 32 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 0.45% 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:
Thursday, December 17
- 8:30 a.m. U.S. – Unemployment Claims, Philly Fed Manufacturing Index, Building Permits, Housing Starts
- Tentative, Japan – Monetary Policy Statement , BOJ Policy Rate, BOJ Press Conference
Friday, December 18
- 4:00 a.m. Eurozone – German ifo Business Climate
- 10:00 a.m. U.S. – CB Leading Index m/m
- 4:30 p.m. U.S. – Bank Stress Test Results
For a look at all of today’s economic events, check out our economic calendar.
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