Monday March 21 – Short Term Gold Consolidation

the gold futures contract lost 0.72% on Friday March 18 after its 1.8% gain on Thursday, as it extended a short-term consolidation. The market fell slightly below the $1,900 level on Wednesday ahead of the FOMC release, and on Thursday and Friday it was trading closer to the $1,950 level. This morning, the yellow metal is trading along its Friday closing price, as we can see on the daily chart (chart includes intraday data from today):

Gold is up 0.2% this morning as it is still trading in near-term consolidation. What about other precious metals? Money is 0.3% higher, platinum is 0.7% higher and palladium is 2.2% higher. The prices of the main precious metals are therefore higher this morning.

Friday’s existing home sales release came in slightly below expectations at 6.02 million. Today at 12:00 p.m. we will hear a speech from Fed Chairman Powell.

Markets will continue to react to ongoing news about the Russian-Ukrainian war.

Where Will Gold Price Go After Wednesday’s Fed Release?

We have compiled data since January 2017, a 60-month period that contains forty-two versions of the FOMC. The following chart shows the average trajectory of the gold price before and after the FOMC releases for the past 42 releases. The market was generally down before the FOMC day. Then it lasted a week. We can see that on average the price of gold was 0.66% higher 10 days after the FOMC statement was announced.

Economic News Calendar

Below you will find our Gold, silver and mining stocks economic news schedule for the next two trading days.

Monday March 21

  • 3:30 am Euro zone – Speech by President Lagarde of the ECB
  • 12:00 p.m. United States – Speech by Fed Chairman Powell
  • 11:30 p.m. Australia – Speech by RBA Governor Lowe

tuesday march 22

  • 9:15 a.m. Euro zone – Speech by Lagarde by the President of the ECB
  • 10:00 a.m. US – Richmond Manufacturing Index
  • 10:35 a.m. United States – Speech by FOMC member Williams

For an overview of all of today’s economic events, check out our economic calendar.

Paul Rejczak
Equity Trading Strategist
Sunshine benefits: analysis. Care. Benefits.

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