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):

Precious Metals Price Action

Gold is 0.3% lower this morning, as it is trading slightly below the $1,670 level. What about the other precious metals? Silver is 0.3% lower, platinum is 0.9% lower and palladium is 0.3% lower. So the main precious metals’ prices are lower this morning.

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

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

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Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.