Daily Gold News: Thursday, Mar. 17 – Gold Price Bounces After the Fed Release

The gold futures contract lost 1.06% on Wednesday, Mar. 16. following its Tuesday’s decline of 1.6%, as it extended a downward correction after rallying to new medium-term high of $2,078.80 on Mar. 8. Yesterday the daily low was at $1,895.20 and this morning the yellow metal is bouncing up to around $1,950 following yesterday’s FOMC Statement and their interest rate increase announcement. Gold is retracing some of the recent decline, as we can see on the daily chart (the chart includes today’s intraday data):

Gold is 0.9% higher this morning, as it is trading closer to the $1,950 level. What about the other precious metals? Silver is 1.4% higher, platinum is 0.8% higher and palladium is 2.6% higher. So the main precious metals’ prices are higher this morning.

Yesterday’s Retail Sales release has been worse than expected at only +0.2%. The markets reacted on the FOMC release at 2:00 p.m. and we’ve seen an increased volatility. Gold price bounced from the mentioned new local low. Today we will get the Unemployment Claims, Philly Fed Manufacturing Index, Building Permits, Housing Starts, Industrial Production and Capacity Utilization Rate releases.

The markets will still continue to react to the ongoing Russia-Ukraine war news.

Where would the price of gold go following yesterday’s Fed release? We’ve compiled the data since January of 2017, a 60-month-long period of time that contains of forty two FOMC releases. The first chart shows price paths 5 days before and 10 days after the FOMC release. The latest FOMC Statement release came out on January 26. Gold price was 0.4% higher 10 days after the release.

The following chart shows average gold price path before and after the FOMC releases for the past 42 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 0.66% 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, March 17

• 5:30 a.m. Eurozone – ECB President Lagarde Speech
• 8:00 a.m. U.K. – Monetary Policy Summary, MPC Official Bank Rate Votes, Official Bank Rate
• 8:30 a.m. U.S. – Unemployment Claims, Philly Fed Manufacturing Index, Building Permits, Housing Starts
• 9:15 a.m. U.S. – Industrial Production m/m, Capacity Utilization Rate
• Tentative, Japan – Monetary Policy Statement, BOJ Policy Rate

Friday, March 18

• 10:00 a.m. U.S. – Existing Home Sales, CB Leading Index m/m
• Tentative, Japan – BOJ Press Conference

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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