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Gold price down a bit ahead of FOMC meeting

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(Kitco News) - Gold prices are slightly lower and silver slightly higher in early U.S. trading Monday. Gold is seeing a modest corrective pullback and some mild profit taking from the futures traders ahead of this week’s highly anticipated monetary policy meeting of the U.S. Federal Reserve. February gold was last down $3.00 at $1,926.40 and March silver was up $0.183 at $23.805.

The U.S. data point of the week is the Federal Reserve Open Market Committee (FOMC) meeting that begins Tuesday morning and ends Wednesday afternoon with a statement. Most believe the Fed will raise the key U.S. interest rate by 0.25%, following the recent 0.5% rate hikes. Trading in stock and financial markets early this week may be more muted ahead of the FOMC statement and press conference by Fed Chairman Jerome Powell Wednesday afternoon.

Global stock markets were mixed overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins. Still, the U.S. stock indexes are in price uptrends on the daily bar charts and the stock index bulls have the overall near-term technical advantage as S&P and Nasdaq indexes on Friday hit six-week highs and closed at technically bullish weekly high closes.

Will the Fed stop gold's run? Gold price sees longest weekly winning streak since the summer of 2020

In overnight news, the Euro zone got some upbeat economic data as the European Commission’s economic sentiment indicator for January posted a reading of 99.9 versus 97.1 in December. The January gain marks the third straight monthly rise in the indicator.

The key outside markets today see the U.S. dollar index a bit weaker. Nymex crude oil futures prices are slightly down and trading around $79.50 a barrel. Oil traders are awaiting an OPEC-plus cartel meeting this Wednesday. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.551%.   

U.S. economic data due for release Monday is light and includes the Texas Manufacturing outlook survey.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bulls have the solid overall near-term technical advantage. Prices are in a three-month-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,885.00. First resistance is seen at Friday’s high of $1,935.40 and then at the January high of $1,949.80. First support is seen at Friday’s low of $1,916.50 and then at last week’s low of $1,912.50. Wyckoff's Market Rating: 8.0

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls have the overall near-term technical advantage. However, trading has been sideways and choppy recently. Silver bulls' next upside price objective is closing March futures prices above solid technical resistance at the January high of $24.775. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at Friday’s high of $24.12 and then at last week’s high of $24.415. Next support is seen at Friday’s low of $23.39 and then at $23.26. Wyckoff's Market Rating: 6.0.

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.