Daily Gold News: Monday, Jan. 31 – Gold Price Remains Below the $1,800 Level

The gold futures contract lost 0.47% on Friday following its Thursday’s decline of 1.9%, as it reacted to the strengthening U.S. dollar after Wednesday’s FOMC Statement release. Recently gold fluctuated along the $1,850 level after breaking above the previous short-term consolidation. On Wednesday, the market came back to that previous trading range and it got closer to the $1,800 level again, and on Thursday it fell below that support level. This morning yellow metal is retracing some of the recent decline, as we can see on the daily chart (the chart includes today’s intraday data):

Gold is 0.1% higher this morning, as it is still trading below the $1,800 price level. What about the other precious metals? Silver is 0.2% higher, platinum is 0.1% higher and palladium is virtually flat. So the main precious metals’ prices are slightly higher this morning.

Friday’s Core PCE Price Index release has been as expected at +0.5%. Today we will get the Chicago PMI release at 9:45 a.m.

Where would the price of gold go following Wednesday’s Fed release? We’ve compiled the data since January of 2017, a 59-month-long period of time that contains of forty one FOMC releases. The following chart shows average gold price path before and after the FOMC releases for the past 41 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 0.67% 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:

Monday, January 31

• 9:45 a.m. U.S. – Chicago PMI
• 12:40 p.m. U.S. – FOMC Member George Speech
• 10:30 p.m. Australia – Cash Rate, RBA Rate Statement
• All Day, China – Bank Holiday

Tuesday, February 1

• 8:30 a.m. Canada – GDP m/m
• 9:45 a.m. U.S. – Final Manufacturing PMI
• 10:00 a.m. U.S. – ISM Manufacturing PMI, JOLTS Job Openings, Construction Spending m/m, ISM Manufacturing Prices
• 8:30 p.m. Australia – RBA Governor Lowe Speech
• All Day, China – Bank Holiday

For a look at all of today’s economic events, check out our economic calendar.

Paul Rejczak
Stock Trading Strategist
Sunshine Profits: Analysis. Care. Profits.

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