Gold price rallies following yesterday’s pivot in Fed’s monetary policy.
The gold futures contract gained 0.21% on Wednesday, December 13 as it fluctuated ahead of the FOMC Statement release. Yesterday the market slightly extended its downtrend, the daily low was at $1,987.90. It continued to fluctuate following last week’s Monday’s extraordinary price action and a downward reversal from new all-time high price of $2,152.30. Gold traded below $2,000 mark on stronger U.S. dollar, uncertainty concerning this week’s economic data. After the Fed’s release gold rallied back above $2,000 price level.
On October 6 gold reached new medium-term low of $1,823.50. It was the lowest since early March, but then the market bounced and rallied above $2,000.
This morning gold is trading much higher as we can see on the daily chart (the chart includes today’s intraday data):
The gold price is 2.6% higher as it is trading closer to $2,050 level. What about the other precious metals? Silver is 6.0% higher, platinum is 0.5% higher and palladium is 2.4% higher. So the main precious metals’ prices are much higher this morning.
Yesterday’s Producer Price Index release has been as expected at 0.0% m/m. Precious metals rallied following a dovish FOMC Statement release at 2:00 p.m. They extended their rally after the Fed’s Press Conference at 2:30 p.m. Today we will get the Unemployment Claims and Retail Sales releases at 8:30 a.m., among others.
Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days (EST Timezone).
Thursday, December 14
- 7:00 a.m. U.K. - Monetary Policy Summary, MPC Official Bank Rate Votes, Official Bank Rate
- 8:15 a.m. Eurozone - Main Refinancing Rate, Monetary Policy Statement
- 8:30 a.m. U.S. - Unemployment Claims, Retail Sales m/m, Core Retail Sales m/m, Import Prices m/m
- 8:45 a.m. Eurozone - ECB Press Conference
- 10:00 a.m. U.S. - Business Inventories m/m
- 9:00 p.m. China - Industrial Production y/y, Retail Sales y/y
Friday, December 15
- 3:15 a.m. Eurozone - French Flash Manufacturing PMI, French Flash Services PMI
- 3:30 a.m. Eurozone - German Flash Manufacturing PMI, German Flash Services PMI
- 4:00 a.m. Eurozone - Flash Manufacturing PMI, Flash Services PMI
- 4:30 a.m. U.K. - Flash Manufacturing PMI, Flash Services PMI
- 8:30 a.m. U.S. - Empire State Manufacturing Index
- 9:15 a.m. U.S. - Industrial Production m/m, Capacity Utilization Rate
- 9:45 a.m. U.S. - Flash Manufacturing PMI, Flash Services PMI
- 12:25 p.m. Canada - BOC Governor Macklem Speech
Paul Rejczak
Stock Trading Strategist