Yahoo Finance Daily Gold News: Friday, Jan. 28 – Gold Price Breaks Below $1,800
The gold futures contract lost 1.90% on Thursday following its Wednesday’s decline of 1.2%, as it reacted to the strengthening U.S. dollar after Wednesday’s FOMC Statement release. Recently gold fluctuated along the $1,850 level after breaking above the previous short-term consolidation. On Wednesday, the market came back to that previous trading range and it got closer to the $1,800 level again, and yesterday it fell below that support level. This morning yellow metal is extending the short-term downtrend, 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 $1,800 price level. What about the other precious metals? Silver is 1.0% lower, platinum is 2.2% lower and palladium is 2.1% lower. So the main precious metals’ prices are lower this morning.
Yesterday’s U.S. Advance GDP release has been much better than expected at +6.9%. Today we will get the important Core PCE Price Index release at 8:30 a.m.
Where would the price of gold go following Wednesday’s Fed release? We’ve compiled the data since January of 2017, a 59-month-long period of time that contains of forty one 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 December 15. Gold price was 2.8% higher 10 days after the release.
The following chart shows average gold price path before and after the FOMC releases for the past 41 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 0.67% higher 10 days after the FOMC Statement announcement.
Below you will find our Gold, Silver, and Mining Stocks economic news schedule for today:
Friday, January 28
8:30 a.m. U.S. – Core PCE Price Index m/m, Employment Cost Index q/q, Personal Income m/m, Personal Spending m/m
10:00 a.m. U.S. – Revised UoM Consumer Sentiment, Revised UoM Inflation Expectations
For a look at all of today’s economic events, check out our economic calendar.
Paul Rejczak
Stock Trading Strategist
Sunshine Profits: Analysis. Care. Profits.
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This article was originally posted on FX Empire
