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Gold, Silver Steady Ahead of FOMC Minutes

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(Kitco News) - Gold and silver prices are trading not far from unchanged levels in midday U.S. trading Wednesday. Traders are awaiting the 2:00 p.m. EDT release of the minutes from the last meeting of the Federal Reserve’s Open Market Committee (FOMC), which took place July 30-31. Market watchers want to see if the minutes contain any clues on the timing and number of future U.S. interest rate cuts. December gold futures were last down $0.30 an ounce at 1,515.40. September Comex silver prices were last down $0.003 at $17.145 an ounce.

Buying interest in safe-haven gold and silver at midweek is being squelched by keener “risk-on” trader and investor mentalities. Helping to lift U.S. and world stock markets this week, President Trump and his administration are on the offensive, saying the U.S. is not headed for economic recession. There are rumors swirling around Washington, D.C., that the Trump administration is considering cutting taxes again. Trump confirmed he is considering tax cuts as a way of keeping the U.S. economy strong.

Trump continues to rail against the Federal Reserve, on Wednesday saying if Fed Chairman Powell “would use his head” the Fed would cut interest rates. However, Trump said he did not “demand” that Powell cut U.S. rates.

The European marketplace took in stride the resignation late Tuesday of Italian Prime Minister Giuseppe Conte.

The key “outside markets” today see Nymex crude oil prices weaker trading around $56.00 a barrel. The U.S. dollar index is slightly lower.

Live 24 hours gold chart [Kitco Inc.]

Technically, the bulls have the solid overall near-term technical advantage. A 2.5-month-old uptrend is in place on the daily bar chart. There are still no significant, early chart clues to suggest a market top is close at hand. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the August high of $1,546.10. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at last week’s low of $1,488.90. First resistance is seen at this week’s high of $1,523.60 and then at $1,530.00. First support is seen at this week’s low of $1,503.00 and then at $1,500.00. Wyckoff's Market Rating: 7.5

Live 24 hours silver chart [ Kitco Inc. ]

September silver futures bulls have the solid overall near-term technical advantage. An 11-week-old uptrend is in place on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the August high of $17.49 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at last week’s low of $16.51. First resistance is seen at $17.37 and then at $17.49. Next support is seen at $17.00 and then at this week’s low of $16.82. Wyckoff's Market Rating: 7.5.

September N.Y. copper closed up 80 points at 258.60 cents today. Prices closed nearer the session high. The copper bears have the solid overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 275.00 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 Tuesday’s high of 260.35 cents and then at this week’s high of 262.60 cents. First support is seen last week’s low of 256.70 cents and then at the August low of 253.15 cents. Wyckoff's Market Rating: 1.5.

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.