Daily Gold News: Monday, June 21 – Gold’s Rebound Following Last Week’s Sell-Off

The gold futures contract lost 0.33% on Friday, as it slightly extended its $100 decline following the FOMC Statement release. On June 1 gold price was the highest since early January. In April the market has bounced from the support level marked by March 8 local low of $1,663.30. Since then it has been advancing. This morning gold is retracing some of the recent decline, as we can see on the daily chart (the chart includes today’s intraday data):

Today gold is 1.1% higher. What about the other precious metals? Silver is 0.8% higher, platinum is 0.2% higher and palladium is 1.0% higher today. So precious metals are higher this morning.

Today we won’t get any new important economic data announcements. The markets will be waiting for tomorrow’s Fed Chief Powell’s Testimony and Wednesday’s important PMI numbers releases.

Where would the price of gold go following last Wednesday’s FOMC Statement? We’ve compiled the data since January of 2017, a 51-month-long period of time that contains of thirty five FOMC releases. The following chart shows average gold price path before and after the FOMC releases for the past 35 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 0.64% 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, June 21

• 10:15 a.m. Eurozone – ECB President Lagarde Speech
• 3:00 p.m. U.S. – FOMC Member Williams Speech

Tuesday, June 22

• 10:00 a.m. U.S. – Existing Home Sales, Richmond Manufacturing Index
• 11:00 a.m. U.S. – FOMC Member Daly Speech
• 2:00 p.m. U.S. – Fed Chair Powell Testimony

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

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

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