Daily Gold News: Friday, Sep. 24 – Gold Below and Back Above $1,750

The gold futures contract lost 1.63% on Thursday, as it retraced its Monday’s-Wednesday’s advance after rebounding from $1,750 price level. On Thursday a week ago, gold broke below the recent local lows as series of the U.S. economic data releases along with the rallying U.S. dollar led to a sell-off in precious metals. The yellow metal came back to $1,750 price level. This morning the market is trading sligthly above $1,750 again, as we can see on the daily chart (the chart includes today’s intraday data):

Today gold is 0.8% higher, as it is retracing some of yesterday’s decline. What about the other precious metals? Silver is 0.7% higher, platinum is 0.8% lower and palladium is 0.5% higher. So precious metals’ prices are higher this morning.

Yesterday’s Unemployment Claims release has been worse than expected at 351,000 and the Flash Manufacturing PMI/ Flash Services PMI releases have been as expected. Today we will get the New Home Sales and a speech from the Fed Chair Powell at 10:00 a.m.

Where would the price of gold go following Wednesday’s FOMC release? We’ve compiled the data since January of 2017, a 54-month-long period of time that contains of thirty eight FOMC releases. The following chart shows average gold price path before and after the FOMC releases for the past 38 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 0.51% higher 10 days after the FOMC Statement announcement.

Below you will find our Gold, Silver, and Mining Stocks economic news schedule for today:

Friday, September 24

• 4:00 a.m. Eurozone – German ifo Business Climate

• 10:00 a.m. U.S. – Fed Chair Powell Speech, New Home Sales

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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Disclaimer

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This article was originally posted on FX Empire

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