GoldPrice

Happy Thursday, traders. Dropping in for an odd, slightly less organized mid-week post to talk a bit more about yesterday’s FOMC and how things look for gold markets. In trying to get a helpful recap up as soon as possible after Chairman Powell’s press conference yesterday, I bypassed any attempt to give my view on things; frankly, I needed the extra time to sort out my thoughts to begin with.

The ISM manufacturing index hit the lowest point since August 2016 in July, dropping to 51.2 vs. 52 expected. Factory activity has now seen four straight months of downturn and is nearing contraction.

The number of Americans filing applications for unemployment benefits increased last week from 206,000 to 215,000. With projections of 212,000, the increase was somewhat in line with market expectations, and analysts consider the trend to be consistent with tightening labor market conditions.

Good afternoon traders, that thing we all knew was happening…happened! The Federal Reserve rode in to the rescue of the American economy, whether the economy needed rescuing or not! Gold prices following the policy announcement and Chairman Powell’s press conference at sharply lower for the day, pricing current around $1412/oz in spot markets. While this is a disappointment in relation to the yellow metal’s higher prices this morning, it is broadly in line with our recent assertions that at quarter-point rate cut was already priced into the gold market at $1410.

The FOMC has changed gears and has indicated they are ready to start cutting rates, the first down move since 2008. In today’s meeting is all but certain that we will see a 25-basis point cut, the 50-basis point cut is basically off the table. 

Good morning, traders. Welcome back to another week in the metals and currency markets. It’s going to be a big one, so let’s jump right in. Gold prices are up slightly this morning to start the week, but mostly in-line with Friday’s close as the market wait quietly for the FOMC’s rate path pronouncement on Wednesday afternoon.

Happy Friday, traders! Welcome back for our recap of the week in the metals markets. At time of writing, gold prices are trading steadily in the $1415-20 range ahead of one of the most anticipated FOMC meetings in over a year.

US GDP growth came in higher than expected with 2.1% growth vs. 1.8% expected. Growth is still down from the 3.1% growth seen in Q1, although that was partially attributed to a backlog of stockpiled inventory. On the other hand, personal consumption saw a major uptick in Q2 compared to Q1.

The number of Americans applying for unemployment benefits last week hit the lowest level in three months, indicating ongoing strength in the US labor market which boasts the lowest unemployment rate in nearly 50 years.

Orders for long-lasting durable goods such as vehicles and computers saw the first gain in June in three months, accompanied by an uptick in business investment. However, spending and investment in businesses is still far below the figures seen this time last year.

US home sales have disappointed again this week, with sub-expectations existing home sales data released on Tuesday closely followed by a miss in new home sales on Wednesday. Year-over-year, single-family home sales rose 7% in June, and overall new home sales rose 4.5% vs. 5.4% expected and compared to -7.8% the month prior.

US home sales dropped more than expected in June with a -1.72% decline vs. just -0.2% expected. Despite lower mortgage rates, the housing market continues to struggle under current economic conditions.