Daily Gold News: Wednesday, Mar. 16 – Gold Retraced the Rally, Fed in Focus

The gold futures contract lost 1.59% on Tuesday, Mar. 15, following its Monday’s decline of 1.6%, as it retraced even more of the recent rally. The market fell closer to the $1,900 level yesterday. Today we will get the important FOMC Statement release at 2:00 p.m. This morning gold is trading within a relatively narrow price range, as we can see on the daily chart (the chart includes today’s intraday data):

Gold is 0.2% higher this morning, as it is trading along the $1,925 level. What about the other precious metals? Silver is 0.4% lower, platinum is 2.8% higher and palladium is 1.2% higher. So the main precious metals’ prices are mixed this morning.

Yesterday’s Producer Price Index release has been lower than expected at +0.8% m/m. Today we will get the important FOMC Statement release, along with the FOMC Press Conference. The Statement release will be at 2:00 p.m. and the Conference will be at 2:30 p.m.

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

Where would the price of gold go following today’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.

Wednesday, March 16

• 8:30 a.m. U.S. – Retail Sales m/m, Core Retail Sales m/m, Import Prices m/m
• 8:30 a.m. Canada – CPI m/m, Common CPI y/y, Median CPI y/y, Trimmed CPI y/y, Core CPI m/m
• 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
• 8:30 p.m. Australia – Employment Change, Unemployment Rate

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

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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