Gold price a bit weaker as traders await FOMC conclusion
(Kitco News) - Gold prices are slightly lower in early U.S. dealings Wednesday. The metals and many other markets are in a pause mode, awaiting the data point of the week: Wednesday afternoon’s conclusion of the meeting of the Federal Reserve’s Open Market Committee (FOMC), including a press conference from Fed Chair Jay Powell. Traders and analysts want to know how the Fed is leaning on economic growth prospects and on inflation.
A growing number of market watchers are concerned about slowing economic growth and rising inflation, what many call stagflation. The marketplace will also look for clues on the timing of the Fed’s expected tapering of its bond-buying program (quantitative easing). Look for some increased market volatility in the immediate aftermath of the FOMC statement at 2:00 p.m. EDT. August gold futures were last down $1.80 at $1,798.00 and September Comex silver was last up $0.136 at $24.785 an ounce.
Global stock markets were mostly firmer overnight. The U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins and near their record highs. Risk appetite remains generally upbeat amid quieter summertime trading.
The key outside markets today see the U.S. dollar index firmer. Nymex crude oil futures prices are up a bit and trading around $72.00 a barrel. The yield on the U.S. Treasury 10-year note is presently fetching 1.25%.
Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, advance economic indicators and the weekly DOE liquid energy stocks report.
Technically, gold futures bulls and bears are on a level overall near-term technical playing field. Bulls’ next upside price objective is to produce a close above solid resistance at the July high of $1,835.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,775.00. First resistance is seen at the overnight high of $1,807.60 and then at this week’s high of $1,812.00. First support is seen at this week’s low of $1,792.80 and then at last week’s low of $1,789.10. Wyckoff's Market Rating: 5.0.
The silver bears have the firm overall near-term technical advantage. Silver bulls' next upside price objective is closing September futures prices above solid technical resistance at $26.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the March low of $23.825. First resistance is seen at $25.00 and then at Tuesday’s high of $25.32. Next support is seen at the overnight low of $24.68 and then at this week’s low of $24.515. Wyckoff's Market Rating: 2.5.