Daily Gold News: September 20 – Gold Fluctuates Ahead of the Fed

Gold price remains close to $1,950 as markets await the FOMC release.

The gold futures contract gained 0.02% on Tuesday, September 19 as it fluctuated following its recent advance and a rebound from last Thursday’s local low of around $1,922. Gold was gaining despite stronger U.S. dollar, stock markets’ weakness. In late August it was rallying amidst reduced pressure for the further monetary policy tightening and on Septemeber 1 it reached a local high of $1,980.

On June 29 gold was the lowest since mid-March (the low was at $1,900.60). In May gold retreated from new medium-term high of $2,085.40 and in early March it was selling off after the Fed Chief Powell’s hawkish testimony. Then it rebounded from a local low of around $1,813.

Today gold is trading sideways ahead of the FOMC release as we can see on the daily chart (the chart includes today’s intraday data):

Daily Gold News: September 20 – Gold Fluctuates Ahead of the Fed - Image 1

The gold price is unchanged as it is trading slightly above the $1,950 level. What about the other precious metals? Silver is 0.4% higher platinum is 0.3% lower and palladium is 1.8% higher. So the main precious metals’ prices are mixed this morning.

Yesterday’s Building Permits and Housing Starts releases have been mixed. Today the markets are waiting for the important FOMC Rate Decision at 2:00 p.m. and the FOMC Press Conference at 2:30 p.m. There will likely be a lot of volatility later in the day.

Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days (EST Timezone).

Wednesday, September 20

  • 2:00 a.m. U.K. - CPI y/y
  • 2:00 p.m. U.S. - Federal Funds Rate, FOMC Economic Projections, FOMC Statement
  • 2:30 p.m. U.S. - FOMC Press Conference

Thursday, September 21

  • 7:00 a.m. U.K. - Monetary Policy Summary, MPC Official Bank Rate Votes, Official Bank Rate
  • 8:30 a.m. U.S. - Unemployment Claims, Philly Fed Manufacturing Index, Current Account
  • 10:00 a.m. U.S. - Existing Home Sales, CB Leading Index m/m
  • Tentative, Japan - Monetary Policy Statement, BOJ Policy Rate

Paul Rejczak
Stock Trading Strategist