Gold, silver firmer as marketplace awaits FOMC
(Kitco News) - Gold and silver prices are modestly up in tentative midday U.S. trading Wednesday, ahead of the afternoon FOMC statement and press conference from Federal Reserve Chairman Jerome Powell. The precious metals are being supported in part by a weaker U.S. dollar index and solidly higher crude oil prices. Crude oil has made a solid rebound from its recent losses, which gives the raw commodity bulls, including the metals bulls, better confidence their markets can sustain some price uptrends. Some weaker-than-expected U.S. retail sales data released this morning also was a bit friendly to the safe-haven metals. October gold futures were last up $8.70 at $1,966.70 and December Comex silver was last up $0.111 at $27.575 an ounce.
In focus today, the U.S. Federal Reserve concludes its two-day monetary policy meeting this afternoon with a statement and press conference from Powell. The Fed’s post-FOMC meeting statement and Powell’s remarks will be closely scrutinized for more clarity on the Fed’s shift to an easing of its inflation guidelines. Markets could become more volatile in the wake of the FOMC statement and Powell’s remarks. The Bank of England and Bank of Japan also have monetary policy meetings this week.
Global stock markets were again mostly up overnight. U.S. stock indexes are mixed at midday. Trader and investor risk appetite remains keener at mid-week as global stock markets have generally rebounded from selling pressure that began the month of September. Gold and silver market bulls are impressed their safe-haven metals are showing resilience amid the upbeat attitudes.
Technically, October gold futures bulls have the firm overall near-term technical advantage amid recent choppy trading. Prices are in a five-month-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at the September high of $1,992.50. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at today’s high of $1,975.40 and then at $1,992.50. First support is seen at today’s low of $1,949.10 and then at this week’s low of $1,937.00. Wyckoff's Market Rating: 7.0
December silver futures bulls have the firm overall near-term technical advantage amid a five-month-old price uptrend in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the September high of $29.235 an ounce. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at this week’s high of $27.865 and then at $28.00. Next support is seen at this week’s low of $26.85 and then at $26.50. Wyckoff's Market Rating: 7.0.
December N.Y. copper closed up 15 points at 306.45 cents today. Prices closed nearer the session high today. The copper bulls have the solid overall near-term technical advantage as prices are in a six-month-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 309.45 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 279.60 cents. First resistance is seen at 309.45 cents and then at 312.50 cents. First support is seen at this week’s low of 302.50 cents and then at 300.00 cents. Wyckoff's Market Rating: 8.0.