Daily Gold News: Wednesday, June 16 – Markets Await FOMC Announcement

The gold futures contract lost 0.51% on Tuesday, as it remained close to Monday’s low. Gold is extending its month-long consolidation along $1,850-1,900. On June 1 gold price was the highest since early January. In April the market has bounced from the support level marked by March 8 local low of $1,663.30. Since then it has been advancing. This morning gold is trading along yesterday’s closing price, as we can see on the daily chart (the chart includes today’s intraday data):

Today gold is 0.2% lower. What about the other precious metals? Silver is 0.2% higher, platinum is 0.7% lower and palladium is 0.5% higher today. So precious metals are mixed this morning.

Yesterday’s Retail Sales release has been worse than expected at -1.3%. The PPI release has been higher than expected at +0.8%.

The markets will be waiting for today’s FOMC Statement announcement at 2:00 p.m. and the Press Conference at 2:30 p.m. We will also have Building Permits and Housing Starts releases this morning.

Where would the price of gold go following today’s news release? We’ve compiled the data since January of 2017, a 51-month-long period of time that contains of thirty five 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 FOMC 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 on April 28. Gold price was 2.8% higher 10 days after the release.

The following chart shows average gold price path before and after the FOMC releases for the past 35 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 0.64% 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, June 16

  • 8:30 a.m. U.S. – Building Permits, Housing Starts, Import Prices m/m
  • 8:30 a.m. Canada – CPI m/m
  • 2:00 p.m. U.S. – FOMC Statement, FOMC Economic Projections, Federal Funds Rate
  • 2:30 a.m. U.S. – FOMC Press Conference
  • 6:30 p.m. Canada – BOC Governor Macklem Speech
  • 9:30 p.m. Australia – Employment Change, Unemployment Rate

Thursday, June 17

  • 8:30 a.m. U.S. – Unemployment Claims, Philly Fed Manufacturing Index
  • Tentative, Japan – Monetary Policy Statement, BOJ Policy Rate

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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