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Gold, Silver Slightly Up As FOMC On Deck

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(Kitco News) - Gold and silver prices are slightly higher in midday U.S. trading Monday. The precious metals markets are on hold just ahead of big U.S. economic events happening as the week progresses. August gold futures were last up $1.30 an ounce at 1,420.60. September Comex silver prices were last up $0.033 at $16.43 an ounce.

On Tuesday the Federal Reserve’s Open Market Committee (FOMC) meets to determine monetary policy. The Fed is expected to lower interest rates at the conclusion of the meeting Wednesday afternoon. The question is, will it be a 0.25% or 0.5% cut. Most believe it will be a quarter-point. However, President Trump again brow-beat the Fed Monday with a tweet suggesting the central bank is not doing enough to stimulate the U.S. economy. Trump’s heat on the Fed could prompt a half-point cut.

On Friday the U.S. employment situation report for July is out. The key non-farm payrolls number is expected to be up around 165,000. In June, non-farm payrolls were up 224,000. This report is arguably the most important monthly economic data point.

Also in focus this week is U.S.-China trade talks that are resuming at a high level. U.S. Treasury Secretary Mnuchin and U.S. Trade Representative Lighthizer are in Shanghai for discussions that began today.

The key “outside markets” today see Nymex crude oil prices near firmer and trading around $56.65 a barrel. The U.S. dollar index is up and today hit a new high for the year.

Live 24 hours gold chart [Kitco Inc.]

Technically, August gold futures prices closed near mid-range. The bulls have the firm overall near-term technical advantage and are keeping in place a two-month-old uptrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the July high of $1,454.40. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the July low of $1,384.70. First resistance is seen at $1,425.00 and then at last week’s high of $1,434.10. First support is seen at last week’s low of $1,414.60 and then at $1,410.00. Wyckoff's Market Rating: 7.0

Live 24 hours silver chart [ Kitco Inc. ]

September silver futures prices closed near mid-range today. The silver bulls have the solid overall near-term technical advantage. Prices are in a two-month-old uptrend on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.835. First resistance is seen at $16.50 and then at last week’s high of $16.685. Next support is seen at $16.35 and then at last week’s low of $16.195. Wyckoff's Market Rating: 7.5.

September N.Y. copper closed up 355 points at 272.05 cents today. Prices closed near the session high today and scored a bullish “outside day” up on the daily bar chart. The copper bears have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the July high of 280.30 cents. The next downside price objective for the bears is closing prices below solid technical support at the June low of 259.95 cents. First resistance is seen at 273.85 cents and then at last week’s high of 275.95 cents. First support is seen at today’s low of 268.15 cents and then at 265.00 cents. Wyckoff's Market Rating: 4.0.

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.