Daily Gold News: Wednesday, Apr. 28 – Gold Breaking Lower Ahead of FOMC Release

The gold futures contract lost 0.07% on Tuesday, as it continued to trade within a short-term consolidation. Early in the month the market has bounced from the support level marked by March 8 local low of $1,663.30. In early March yellow metal’s price was the lowest since last year’s June. Today gold is trading below the mentioned short-term consolidation, as we can see on the daily chart (the chart includes today’s intraday data):

Gold is 0.6% lower this morning, as it is trading below the recent local lows. What about the other precious metals? Silver is 1.5% lower, platinum is 1.1% lower and palladium is 1.6% higher today. So precious metals are lower this morning.

Yesterday’s CB Consumer Confidence announcement has been better than expected at 121.7. Today the markets will be waiting for FOMC Statement release at 2:00 p.m. and tomorrow we will have the Advance GDP release .

Where would the price of gold go following tomorrow’s U.S. Advance GDP release? We’ve compiled the data since January of 2013, an over 8-year-long period of time that contains of thirty three Advance GDP releases. The first chart shows price paths 5 days before and 10 days after the Adv. GDP release. The last three cases are marked with dashed lines. Gold lost 2.28% 2.54% in January/ February and it gained 0.28% in October/ November last year.

The following chart shows the average gold price path before and after the U.S. Advance GDP releases for the past 33 months. The market was usually going sideways ahead of the release day and closing 0.21% lower on the 10th day after the NFP release.

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

Wednesday, April 28

• 10:00 a.m. Eurozone – ECB President Lagarde Speech
• 2:00 p.m. U.S. – FOMC Statement, Federal Funds Rate
• 2:30 p.m. U.S. – FOMC Press Conference
• Tentative, All Day – OPEC-JMMC Meetings
• All Day, Japan – Bank Holiday

Thursday, April 29

• 8:30 a.m. U.S. – Advance GDP q/q , Advance GDP Price Index q/q, Unemployment Claims
• 10:00 a.m. U.S. – Pending Home Sales m/m
• 9:00 p.m. China – Manufacturing PMI, Non-Manufacturing PMI

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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