Daily Gold Update: Monday, September 26 – Strong U.S. Dollar Pushing Gold Down

Gold Price Recap

The gold futures contract lost 1.52% on Friday, September 23, as it broke below the recent trading range on strengthening U.S. dollar, among other factors. The market broke slightly below the $1,650 level on Friday, and this morning it further extended the downtrend, as we can see on the daily chart (the chart includes today’s intraday data):

Precious Metals Price Action

Gold is 0.3% lower this morning, as it is trading slightly below the $1,650 level. What about the other precious metals? Silver is 1.0% lower, platinum is 0.4% lower and palladium is 1.1 % lower. So the main precious metals’ prices are lower again this morning.

Fundamentals and Economic News Schedule

Friday’s PMI releases have been better than expected. Today we will have the FOMC Members speeches later in the day.

Where would the price of gold go following last 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 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.

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

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

Tuesday, September 27

• 7:30 a.m. U.S. – Fed Chair Powell Speech
• 8:30 a.m. U.S. – Durable Goods Orders m/m, Core Durable Goods Orders m/m
• 9:55 a.m. U.S. – FOMC Member Bullard Speech
• 10:00 a.m. U.S. – CB Consumer Confidence, New Home Sales, Richmond Manufacturing Index

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

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