Daily Gold Update: Friday, September 23 – Gold Price Breaks to New Lows

Gold Price Recap

The gold futures contract gained 0.32% on Thursday, September 22, as it further extended its short-term consolidation following the September 15 breakdown below the $1,700 price level. This morning the yellow metal is breaking to new local lows on strengthening U.S. dollar, monetary policy tightening fears, as we can see on the daily chart (the chart includes today’s intraday data):

Precious Metals Price Action

Gold is 1.7% lower this morning, as it is trading below the $1,650 level. What about the other precious metals? Silver is 3.1% lower, platinum is 2.9% lower and palladium is 3.4% lower. So the main precious metals’ prices are lower this morning.

Fundamentals

Yesterday’s Unemployment Claims release has been better than expected at 213,000. Today we will get the important PMI releases at 9:45 a.m. and a speech from the Fed Chair Powell at 2:00 p.m.

Where would the price of gold go following Wednesday’s Fed release? We’ve compiled the data since January of 2017, a 66-month-long period of time that contains of forty five 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 July 27. Gold price was 5.5% higher 10 days after the release.

The following chart shows average gold price path before and after the FOMC releases for the past 45 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 0.68% higher 10 days after the FOMC Statement announcement.

Economic News Schedule

Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days.

Friday, September 23

• 3:15 a.m. Eurozone – French Flash Services PMI, French Flash Manufacturing PMI
• 3:30 a.m. Eurozone – German Flash Manufacturing PMI, German Flash Services PMI
• 4:30 a.m. U.K. – Flash Manufacturing PMI, Flash Services PMI
• 9:45 a.m. U.S. – Flash Services PMI, Flash Manufacturing PMI
• 2:00 p.m. U.S. – Fed Chair Powell Speech

Monday, September 26

• 4:00 a.m. Eurozone – German ifo Business Climate
• 9:00 a.m. Eurozone – ECB President Lagarde Speech
• 10:00 a.m. U.S. – FOMC Member Collins Speech
• 4:00 p.m. U.S. – FOMC Member Mester Speech
• Tentative, Japan – BOJ Governor Kuroda Speech

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

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