Daily Gold Update: Thursday, September 22 – Gold Extends Consolidation Despite Fed’s Volatility
Gold Price Recap
The gold futures contract gained 0.28% on Wednesday, September 21 after a volatile trading day following the Fed’s important Rate Decision release. Gold dipped slightly below its recent local low, but it bounced and closed above the $1,975 price level. So yesterday it was the lowest since April of 2020. This morning the yellow metal is trading along the yesterday’s closing price, as we can see on the daily chart (the chart includes today’s intraday data):
Fundamentals and FOMC Analysis
Yesterday’s Fed’s Rate Decision release has led to an increased volatility, but gold remained relatively flat at the close of the day. Today we will get the Unemployment Claims, Current Account releases, among others.
Where would the price of gold go following yesterday’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.
Thursday, September 22
- 7:00 a.m. U.K. – Monetary Policy Summary, Official Bank Rate, MPC Official Bank Rate Votes
- 8:30 a.m. U.S. – Unemployment Claims, Current Account
- 10:00 a.m. U.S. – CB Leading Index m/m
- Tentative, Japan – BOJ Press Conference
- All Day, Japan – Bank Holiday
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
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