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Daily Gold News: Friday, June 18 – Gold’s Rebound Following $100 Decline

By:
Paul Rejczak
Published: Jun 18, 2021, 11:55 UTC

Today gold is 1.0% higher. What about the other precious metals?

Comex Gold

In this article:

The gold futures contract lost 2.05% on Thursday, as it extended its Wednesday’s decline following the FOMC Statement release. 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 closer to $1,800 price level after bouncing from Thursday’s low of $1,767.90, as we can see on the daily chart (the chart includes today’s intraday data):

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Today gold is 1.0% higher. What about the other precious metals? Silver is 1.9% higher, platinum is 1.5% higher and palladium is 2.0% higher today. So precious metals are higher this morning.

Yesterday’s Unemployment Claims release has been worse than expected at 412,000. Today we won’t get any new important economic data releases.

Where would the price of gold go following Wednesday’s FOMC Statement? 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.

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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.

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Below you will find our Gold, Silver, and Mining Stocks economic news schedule for today:

Friday, June 18

  • 2:30 a.m. Japan – 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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Disclaimer

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.

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About the Author

Paul Rejczakcontributor

Stock market strategist, who has been known for the quality of his technical and fundamental analysis since the late nineties.

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