AM-PM Roundup
Gold, silver treading water ahead as FOMC meeting under way
(Kitco News) - Gold and silver prices are trading near unchanged in midday U.S. trading Tuesday. Neither the bulls nor the bears want to be too aggressive as the Fed's FOMC meeting has begun and its conclusion comes in just over 24 hours. December gold was last up $0.60 at $1,954.00 and December silver was down $0.083 at $23.415.
The main event for the marketplace this week will be the Federal Reserve's Open Market Committee (FOMC) meeting that began 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 and not raise interest rates, 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."
U.S. stock indexes are lower at midday, pressured by the potential of the auto workers strike to damage the U.S. economy, as well as rising energy prices possibly denting consumer confidence.
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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 4.337%.
![Live 24 hours gold chart [Kitco Inc.]](/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, December gold futures bears have the firm overall near-term technical advantage. A four-month-old downtrend is in place on the daily bar chart. Bulls' next upside price objective is to produce a close 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 today's high of $1,958.90 and then at $1,965.00. First support is seen at this week's low of $1,943.80 and then at $1,931.20. Wyckoff's Market Rating: 3.0
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
December silver futures bears have the overall near-term technical advantage. However, there are now solid technical support levels just below the market. Silver bulls' next upside price objective is closing 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 today's high of $23.705 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: 3.5.
December N.Y. copper closed down 380 points at 374.10 cents today. Prices closed nearer the session low. The copper bears have gained the slight overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 390.85 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 367.00 cents. First resistance is seen at today's high of 378.10 cents and then at this week's high of 382.30 cents. First support is seen at the September low of 371.15 cents and then at 367.00 cents. Wyckoff's Market Rating: 4.5.
