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Gold down amid better risk appetite, divided Fed

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(Kitco News) - Gold prices are moderately lower in midday U.S. trading Thursday. Risk aversion in the world marketplace has subsided late this week, meaning less safe-haven demand for gold and silver. The U.S. Federal Reserve is also being deemed as less dovish on monetary policy following Wednesday’s FOMC meeting. December gold futures were last down $9.60 an ounce at 1,506.20. December Comex silver prices were last down $0.019 at $17.90 an ounce.

The marketplace is presently not as anxious as earlier this week, in the wake of the weekend terrorist attack on Saudi oil installations. It may be the case that President Trump will just apply stronger economic sanctions on Iran and not use a military option to respond to Iran’s attack on Saudi Arabia.

Traders and investors Thursday were still digesting the Federal Reserve’s Open Market Committee (FOMC) meeting that ended Wednesday afternoon and raised U.S. interest rates. The move was expected by the marketplace. However, the FOMC members were split on the move, voting 7 to 3 in favor of the cut. The marketplace deemed the FOMC statement as not so easy on U.S. monetary policy as many had expected, despite the rate cut. “A divided Fed” is the term many are now using to describe the U.S. central bank’s monetary posture.

The Bank of Japan, the Swiss National Bank and the Bank of England all held their monetary policies steady at the regular monetary policy meetings on Thursday.

The Paris-based OECD think tank has forecast global economic growth in 2019 at 2.9%, which is the slowest pace in 10 years. The OECD cited the U.S.-China trade war and Brexit fears as culprits for the slowing world economic growth pace.

Nymex crude oil prices are higher and trading around $58.65 a barrel. Reports this week said the damaged Saudi oil installations would be back on line by the end of this month, which is much sooner than initially expected.

The other key outside market today sees the U.S. dollar index trading modestly lower.

Live 24 hours gold chart [Kitco Inc.]

Technically, December gold futures prices were near mid-range at midday. The bulls still have the firm overall near-term technical advantage, but a 3.5-month-old uptrend on the daily bar chart is now in serious jeopardy. The bulls need to show fresh power soon to keep the price uptrend alive. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the September high of $1,566.20. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,485.00. First resistance is seen at this week’s high of $1,519.70 and then at $1,525.00. First support is seen at this week’s low of $1,490.70 and then at $1,485.00. Wyckoff's Market Rating: 7.0

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures bulls have the overall near-term technical advantage. A 3.5-month-old uptrend is still in place on the daily bar chart, but now just barely. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $19.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is seen at this week’s high of $18.17 and then at last week’s high of $18.555. Next support is seen at today’s low of $17.655 and then at last week’s low of $17.47. Wyckoff's Market Rating: 6.5.

December N.Y. copper closed down 40 points at 260.95 cents today. Prices closed nearer the session low today. 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 275.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the September low of 248.20 cents. First resistance is seen at Tuesday’s high of 264.75 cents and then at 268.00 cents. First support is seen at last week’s low of 259.00 cents and then at 257.00 cents. Wyckoff's Market Rating: 3.0.

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