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Gold price firmer amid bullish outside markets

Kitco News

(Kitco News) - Gold and silver prices are modestly up in early U.S. trading Tuesday. The precious metals markets are mildly supported on this day by friendly outside markets that include a weaker U.S. dollar index and higher crude oil prices. Trading remains subdued ahead of the key FOMC meeting. December gold was last up $3.40 at $1,957.00 and December silver was up $0.117 at $23.615.

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

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. Reads a Wall Street Journal headline today: “Strong growth, rising oil prices pose risks to Fed’s soft landing.”

In overnight news, the Euro zone August consumer price index was up 5.2%, year-on-year, which was slightly down from market expectations and the revised 5.3% rise seen in flash August CPI report.

Fed speak: Will Fed Chair Powell point to rate cuts at the September meeting? - Axel Merk

The key outside markets today see the U.S. dollar index slightly weaker. Nymex crude oil prices are higher, hit another 10-month high overnight, and trading around $92.75 a barrel. There are now high odds Nymex crude oil prices will hit $100 a barrel in the coming weeks. The benchmark U.S. Treasury 10-year note yield is presently fetching around 4.3%.

U.S. economic data due for release Tuesday includes the weekly Johnson Redbook retail sales report and new residential construction.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bears have the firm overall near-term technical advantage. Prices are in a four-month-old downtrend on the daily bar chart. 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 $1,965.00 and then at $1,975.00. First support is seen at $1,950.00 and then at Monday’s low of $1,943.80. 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 $23.85 and then at $24.00. Next support is seen at this week’s low of $23.235 and then at $23.00. Wyckoff's Market Rating: 3.5.

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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.