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Gold Firms On Safe-Haven Buying; No Reaction To FOMC Minutes

Kitco News

(Kitco News) - Gold prices are moderately higher in early-afternoon U.S. trading Wednesday and are back above $1,200.00, on some safe-haven demand as U.S. President Trump may be in some legal and political trouble. December gold futures were last up $4.40 an ounce at $1,204.50. September Comex silver was last down $0.011 at $14.76 an ounce.

The just-released minutes of the last Federal Open Market Committee (FOMC) meeting on July 31-Aug.1 showed Fed officials are likely to raise U.S. interest rates next month due to recent solid economic growth and expectations for more of the same. However, the FOMC members said lingering trade disputes between the U.S. and its major trading partners could have a negative impact on economic growth. The members also discussed dropping language from their statements that terms U.S. monetary policy “accommodative.”

Wednesday saw some trader and investor anxiety as Trump is in some hot water. Two of his close associates are likely going to jail. This has added a bit of uncertainty to the world marketplace at mid-week. There is talk Trump could pardon those associates, or that he could be impeached. And the mid-term congressional elections are right around the corner.

Another highlight of the trading week will be the annual meeting of world central bankers in Jackson Hole, Wyoming, that begins on Friday. Past years’ meetings have produced important proclamations from world central bankers. Fed Chairman Powell is slated to speak at the symposium.

In overnight news, the German government sold a 10-year bund at an average yield of 0.33%, which is a record low. That yield compares to U.S. 10-year Treasury yields that are around 2.83%.

The key outside markets today find the U.S. dollar index slightly lower again as the bulls are fading this week. Meantime, Nymex crude oil prices are solidly higher and trading above $68.00 a barrel.

Live 24 hours gold chart [Kitco Inc.]

Technically, gold bears still have the overall near-term technical advantage amid a price downtrend on the daily bar chart. However, the bears appear to be exhausted to suggest a market bottom is in place. Gold bulls' next upside near-term price breakout objective is to produce a close in December futures above solid resistance at $1,226.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at last week’s low of $1,167.10. First resistance is seen at $1,212.50 and then at $1,221.40. First support is seen at today’s low of $1,199.20 and then at this week’s low of $1,189.60. Wyckoff's Market Rating: 2.5

Live 24 hours silver chart [ Kitco Inc. ]

September silver futures bears still have the overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $15.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.00. First resistance is seen at today’s high of $14.875 and then at $15.00. Next support is seen at this week’s low of $14.625 and then at $14.50. Wyckoff's Market Rating: 2.5.

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.