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Gold Market, Like Others, On Hold Ahead Of FOMC Results

Kitco News

(Kitco News) - Gold and silver prices ended the U.S. day session slightly lower in two-sided, narrow-ranges trading Tuesday. Mild short covering from the shorter-term traders and some bargain buying in the cash markets were offset by bearish outside markets on this day. April Comex gold was last down $0.40 an ounce at $1,202.80. May Comex silver was last down $0.037 at $16.935 an ounce.

A blizzard on the U.S. eastern seaboard made for quieter trading in U.S. stock and financial markets Tuesday. President Trump cancelled a meeting with German Chancellor Merkel due to the inclement weather.

Focus of the world marketplace is the two-day meeting of the Federal Reserve’s Open Market Committee (FOMC) that began Tuesday morning and ends Wednesday afternoon with a statement and a press conference from Fed Chair Janet Yellen. It’s widely expected the FOMC will raise U.S. interest rates by 0.25% on Wednesday. However, markets have already factored in the likely rate hike announcement, so keener focus will be on the Fed statement and Yellen’s comments at her press conference, regarding the pace of U.S. interest rate increases in the coming months.

Other central banks scheduled to hold monetary policy meetings this week include the U.K., Japan, Norway, Indonesia and Turkey. The central banks of the world are shifting from a general posture of easing monetary policy, to one of starting to tighten monetary policy after several years of extraordinarily low interest rates.

The key outside markets on Tuesday saw the U.S. dollar index trading higher. The dollar index is in a price uptrend and has benefitted recently on the likelihood of a U.S. interest rate hike coming on Wednesday. Nymex crude oil prices were lower and hit a four-month low today. The oil market is in a tailspin, which has dented worldwide investor and trader risk appetite, and has been a significantly bearish element for much of the raw commodity sector, including the precious metals markets.

(Note: Follow me on Twitter--@jimwyckoff--for breaking market news.)

Live 24 hours gold chart [Kitco Inc.]

Technically, April gold futures prices closed near mid-range in quieter trading. The gold bears have the overall near-term technical advantage. Prices are in a three-week-old downtrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,225.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,182.60. First resistance is seen at this week’s high of $1,210.90 and then at $1,217.50. First support is seen at $1,200.00 and then at last week’s low of $1,194.50. Wyckoff's Market Rating: 3.0

Live 24 hours silver chart [ Kitco Inc. ]

May silver futures prices closed nearer the session low today. The silver market bears have the overall near-term technical advantage. Prices are in a three-week-old downtrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.57 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.50. First resistance is seen at this week’s high of $17.16 and then at $17.31. Next support is seen at last week’s low of $16.855 and then at $16.70. Wyckoff's Market Rating: 3.0.

May N.Y. copper closed up 160 points at 264.15 cents today. Prices closed nearer the session high and saw short covering following recent selling pressure. The copper bulls and bears are on a level overall near-term technical playing field. Prices are in a three-week-old downtrend. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at last week’s high of 270.95 cents. The next downside price objective for the bears is closing prices below solid technical support at 250.00 cents. First resistance is seen at today’s high of 265.05 cents and then at 267.50 cents. First support is seen at this week’s low of 259.70 and then at last week’s low of 255.85 cents. Wyckoff's Market Rating: 5.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.