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Gold price slightly up as FOMC meeting looms

Kitco News

(Kitco News) - Gold and silver prices are just a bit higher in early U.S. trading Monday. The precious metals markets are pausing early this week, ahead of this week's key FOMC meeting. December gold was last up $1.80 at $1,948.00 and December silver was up $0.034 at $23.42.

The main event for the marketplace this week will be the Federal Reserve's Open Market Committee (FOMC) meeting that begins Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chairman Jerome Powell. Most look for the FOMC to stand pat on U.S. monetary policy, but still sound a hawkish tone. A Barron's headline today reads: "Strikes, dot plots, energy prices. How the Fed's inflation battle is getting tougher."

Asian and European stocks were mostly weaker overnight. U.S. stock indexes are pointed to firmer openings when the New York day session begins.

The key outside markets today see the U.S. dollar index slightly weaker. Nymex crude oil prices are firmer, hit a 10-month high overnight, and trading around $91.25 a barrel. The benchmark U.S. Treasury 10-year note yield is presently fetching 4.345%.

Gold price downside is shallow as Fed's messaging is limited next week

U.S. economic data due for release Monday includes the NAHB housing market index and Treasury international capital data.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bears have the firm overall near-term technical advantage. Bulls' next upside price objective is to produce a close in December futures above solid resistance at the September high of $1,980.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the August low of $1,913.60. First resistance is seen at last week's high of $1,954.60 and then at $1,965.00. First support is seen at Friday's low of $1,931.20 and then at the September low of $1,921.70. Wyckoff's Market Rating: 3.0

Live 24 hours silver chart [ Kitco Inc. ]

The silver bears have the overall near-term technical advantage. However, there are stiff technical support layers just below the market that may halt the decline. Silver bulls' next upside price objective is closing December futures prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at last week's high of $23.585 and then at $24.00. Next support is seen at $23.00 and then at the September low of $22.555. Wyckoff's Market Rating: 3.0.

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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.