Yahoo Finance Daily Gold News: Wednesday, Jan. 26 – Gold Fluctuates Ahead of the FOMC Release
The gold futures contract gained 0.59% on Tuesday, as it broke above the recent consolidation following stock markets’ and cryptocurrencies rebound. Gold fluctuated within a relatively tight trading range despite global stock markets’ volatility. Investors were reacting to Russia-Ukraine tensions, among other factors. Recently the market got close to the mid-November consolidation of around $1,850-1,875. It marks the nearest important resistance level. This morning yellow metal is trading slightly below the $1,850 level again, as we can see on the daily chart (the chart includes today’s intraday data):
Gold is 0.3% lower this morning, as it is retracing some of yesterday’s advance. What about the other precious metals? Silver is 0.2% higher, platinum is 2.0% higher and palladium is 3.8% higher. So the main precious metals’ prices are mixed this morning.
Yesterday’s U.S. CB Consumer Confidence release has been higher than expected at 113.8. Today, the markets will be waiting for the FOMC Statement release at 2:00 p.m.
Where would the price of gold go following today’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:
Wednesday, January 26
8:30 a.m. U.S. – Goods Trade Balance, Preliminary Wholesale Inventories m/m
10:00 a.m. U.S. – New Home Sales
10:00 a.m. Canada – BOC Monetary Policy Report, BOC Rate Statement
11:00 a.m. Canada – BOC Press Conference
2:00 p.m. U.S. – FOMC Statement, Federal Funds Rate
2:30 p.m. U.S. – FOMC Press Conference
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
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
