Gold, Silver Prices Slightly Up As FOMC In Focus
(Kitco News) - Gold and silver prices are slightly higher in early U.S. trading Tuesday. The precious metals markets and many other markets are in a holding pattern ahead of the Federal Reserve’s Open Market Committee (FOMC) meeting that begins today. A weaker U.S. dollar index today is prompting a bit of buying interest in the metals. December gold futures were last up $1.10 an ounce at $1,205.60. December Comex silver was last up $0.014 at $14.335 an ounce.
The two-day FOMC meeting begins Tuesday morning and ends Wednesday afternoon with a statement. The FOMC is expected to slightly raise U.S. interest rates at this meeting. Fed Chairman Jerome Powell will also hold a press conference after the meeting. As usual, the marketplace will parse the Fed’s wording for clues on the pace of future Fed rate hikes and the Fed’s inflation expectations.
World stock markets were mixed to mostly firmer overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. There are lingering worries U.S. and China’s trade war will escalate to the point of damaging world commerce. Meanwhile, President Trump is negotiating bi-lateral trade deals with other Asian countries and has signed an agreement with South Korea.
The other key outside market today finds November Nymex crude oil prices higher and trading around $72.50 a barrel. Supply worries have boosted oil recently. U.S. sanctions against Iran begin in early November, which will likely take much of that country’s oil off the world market.
U.S. economic data due for release today includes the weekly Johnson Redbook and Goldman Sachs retail sales reports, the S&P/Case-Shiller/Corelogic home index, the monthly house price index, the consumer confidence index, and the Richmond Fed business survey. President Trump also delivers a speech to the United Nations in New York.
Technically, gold bears have the overall near-term technical advantage. However, recent sideways price action favors the bulls and suggests 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 $1,220.70. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the August low of $1,167.10. First resistance is seen at $1,215.80 and then at last week’s high of $1,218.00. First support is seen at $1,200.00 and then at $1,196.00. Wyckoff's Market Rating: 3.0
December silver futures bears have the solid overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $15.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $13.50. First resistance is seen at last week’s high of $14.465 and then at $14.59. Next support is seen at Monday’s low of $14.22 and then at last week’s low of $14.065. Wyckoff's Market Rating: 2.5.