Gold price near steady just ahead of FOMC decision
(Kitco News) - Gold and silver prices are higher but down from daily highs following the just-released FOMC statement that leans a bit more hawkish than most expected. Now the marketplace awaits Fed Chair Powell's press conference, set to begin shortly. Spot gold was last up $10.10 at $1,941.50.
The main event for the marketplace this week, if not this month, saw the Federal Reserve's Open Market Committee (FOMC)keep U.S. interest rates unchanged, as expected. The FOMC statement said U.S. jobs growth has slowed but remains solid. It also said the U.S. economy is expanding strongly and that inflation remains elevated. Traders deemed the statement as showing the U.S. central bank remains determined to get inflation down more, even if it means slowing U.S. economic growth. The marketplace now awaits the afternoon press conference from Fed Chairman Jerome Powell.
In overnight news, the marketplace was a bit disappointed that China's central bank decided to leave its key interest rates unchanged, despite its listing economy.
|Rising debt and debased currency will push gold prices to record highs - AuAG Funds' Eric Strand|
The key outside markets today see the U.S. dollar index lower but up from earlier lows. Nymex crude oil prices are weaker and trading around $90.50 a barrel. There are higher 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 4.345%.
Technically, December gold futures prices hit a two-week high today and closed near the daily high. Prices also scored a bullish "outside day" up on the daily bar chart. Bears still have the overall near-term technical advantage. A four-month-old downtrend is in place on the daily bar chart. However, more gains in the near term would negated the price downtrend and suggest a market bottom is in place. Bulls' next upside price objective is to produce a close above solid resistance at $2,000.00. 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 $1,975.00 and then at the September high of $1,980.20. First support is seen at $1,950.00 and then at this week's low of $1,943.80. Wyckoff's Market Rating: 3.5.
December silver futures prices scored a bullish "outside day" up on the daily bar chart. The silver bears still have the overall near-term technical advantage. However, there are now solid technical support levels just below the market that begin to suggest a market bottom is in place. 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 the September low of $22.555. First resistance is seen at $24.00 and then at $24.50. Next support is seen at today's low of $23.325 and then at $23.00. Wyckoff's Market Rating: 4.0.
December N.Y. copper closed up 270 points at 377.40 cents today. Prices closed nearer the session high. The copper bears have 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 378.95 cents and then at this week's high of 382.30 cents. First support is seen at this week's low of 372.80 cents and then at the September low of 371.15 cents. Wyckoff's Market Rating: 4.5.