Gold sees modest price pressure, post FOMC statement
(Kitco News) Gold prices are a bit lower in afternoon U.S. dealings Wednesday. The just-released data point of the week, the Federal Reserve’s Open Market Committee (FOMC) statement showed the U.S. central bank kept its monetary policy unchanged, as expected. The Fed said the U.S. economy continues to strengthen and that inflationary pressures are still transitory. Based upon markets’ reactions the FOMC statement might be deemed just a bit less dovish than expected. U.S. Treasury bond and note yields rose, while the U.S. dollar index rallied after the statement. Traders are now awaiting a press conference from Fed Chair Jay Powell. A number of market watchers are still concerned about slowing economic growth and rising inflation, what many call stagflation. August gold futures were last down $5.70 at $1,794.10 and September Comex silver was last up $0.106 at $24.75 an ounce.
Global stock markets were mostly firmer overnight. The U.S. stock indexes are mixed in afternoon dealings. Risk appetite remains generally upbeat amid quieter summertime trading.
The key outside markets today see the U.S. dollar index higher and hitting daily highs. Nymex crude oil futures prices are up and trading around $72.25 a barrel.
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 last week’s low of $1,789.10 and then at $1,780.00. 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 this week’s low of $24.515 and then at $24.25. Wyckoff's Market Rating: 2.5.