Gold Going Lower As US Dollar Gains

Published 09/21/2020, 07:14 AM
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The gold futures contract gained 0.63% on Friday, as it continued to fluctuate within a short-term consolidation. Recently gold retraced most of the decline from September 1 local high of $2,001.20. On Wednesday it has reached new short-term local high of $1,983.80 before coming back lower. Gold is still trading within a consolidation along $1,950-2,000, as we can see on the daily chart:

Gold Continuous Contract Daily Chart

Gold is  lower today, as it is retracing Friday's advance following U.S. dollar advance.

What about the other precious metals? Silver gained 0.1% on Friday and today it is 5.5% lower. Platinum gained 0.82% and today it is 4.6% lower. Palladium is 2.4% lower. So precious metals are going down today.

Friday's Consumer Sentiment release has been slightly better than expected. However, the markets went risk off and stocks reached new short-term lows.

Today we will get a speech from the Fed Chair Powell. There will also be speeches from the FOMC Members later in the day. The markets will be also waiting for Tuesday's-Wednesday's Powell's Testimony. Take a look at our economic news schedule below to find out more.

Where would the price of gold go following Wedneday's Fed news release? We've compiled the data since January of 2017, a 43-month-long period of time that contains of thirty FOMC releases.

The following chart shows average gold price path before and after the FOMC. 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 0.8% higher 10 days after the FOMC Statement announcement.

Gold Change Vs FOMC Jan 2017-Jul 2020 Average

Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days:

Monday, September 21

  • 10:00 a.m. U.S. - Fed Chair Powell Speech
  • 12:00 p.m. U.S. - FOMC Member Brainard Speech
  • 6:00 p.m. U.S. - FOMC Member Willaims Speech
  • All Day, Japan - Bank Holiday

Tuesday, September 22

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