Yahoo Finance Daily Gold News: Thursday, Jan. 27 – Gold Went Lower Following Hawkish Fed
The gold futures contract lost 1.23% on Wednesday following the FOMC Statement release. The precious metals’s prices reacted to the strengthening U.S. dollar. Recently gold fluctuated below the $1,850 level after breaking above the previous short-term consolidation. Yesterday, the market came back to that previous trading range and it got closer to the $1,800 level again. This morning yellow metal is extending its short-term downtrend slightly, as we can see on the daily chart (the chart includes today’s intraday data):
Gold is 0.4% lower this morning, as it is trading above the $1,800 price level. What about the other precious metals? Silver is 1.3% lower, platinum is 0.2% lower and palladium is 1.2% higher. So the main precious metals’ prices are lower this morning.
Yesterday’s FOMC Statement release has led to a decline in gold’s price. Today we will get the important U.S. Advance GDP release at 8:30 a.m. We will also have the Unemployment Claims, Durable Goods Orders and Pending Home Sales releases.
Where would the price of gold go following yesterday’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 the next two trading days:
Thursday, January 27
8:30 a.m. U.S. – Advance GDP q/q, Advance GDP Price Index q/q, Unemployment Claims, Durable Goods Orders m/m, Core Durable Goods Orders m/m
10:00 a.m. U.S. – Pending Home Sales m/m
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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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.
This article was originally posted on FX Empire
