Gold

Daily Gold News: Gold Slightly Higher, FOMC in Focus

The gold futures contract gained 1.27% on Tuesday, as it retraced some of its last week’s decline following U.S. dollar’s decline. In late November the market has reached a new low after breaking below local lows along the price level of $1,850. Last week the market has bounced off its mid-November local highs, as we can see on the daily chart ( the chart includes today’s intraday data ):

Gold is 0.3% higher this morning, as it is extending yesterday’s advance. What about the other precious metals? Silver gained 2.48% on Tuesday and today it is 2.7% higher. Platinum gained 2.33% and today it is 0.6% higher. Palladium gained 0.22% yesterday and today it’s 1.0% higher. So precious metals are higher again this morning .

Yesterday’s Empire State Manufacturing Index release has been worse than expected and the Industrial Production has been slightly better than expected.

Today we’ve got much better-than-expected PMI releases from the Eurozone . We will also get the U.S. PMI numbers and Retail Sales this morning.

But the markets are waiting for today’s FOMC Statement announcement (2:00 p.m.).

Where would the price of gold go following that 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 latest 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:

Wednesday, December 16

  • 3:15 a.m. Eurozone – French Flash Manufacturing PMI, French Flash Services PMI
  • 3:30 a.m. Eurozone – German Flash Manufacturing PMI , German Flash Services PMI
  • 8:30 a.m. U.S. – Retail Sales m/m , Core Retail Sales m/m
  • 9:45 a.m. U.S. – Flash Manufacturing PMI , Flash Services PMI
  • 10:00 a.m. U.S. – Business Inventories m/m, NAHB Housing Market Index
  • 2:00 p.m. U.S. – FOMC Statement , Federal Funds Rate , FOMC Economic Projections
  • 2:30 p.m. U.S. – FOMC Press Conference
  • 7:30 p.m. Australia – Employment Change, Unemployment Rate
  • All Day – OPEC-JMMC Meetings

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

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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