Mild price pressure on gold, silver ahead of FOMC results
(Kitco News) - Gold and silver prices are a bit weaker in early U.S. trading Wednesday, ahead of the conclusion of the Federal Reserve’s monetary-policy-setting meeting. Look for quieter price action until the early-afternoon FOMC statement and Fed Chair Powell press conference to follow. December gold was last down $1.90 at $1,992.60. December silver was last down $0.172 at $22.78.
Focus at mid-week is on central bank meetings of the Federal Reserve and the Bank of England. Most of the marketplace expects the FOMC at this meeting to pause in its interest-rate-increase cycle. The Bank of England meets on its monetary policy Thursday. Friday comes the U.S. employment situation report for October.
Asian and European stocks were mixed to firmer overnight. U.S. stock indexes are pointed to firmer openings when the New York day session begins.
In overnight news, China’s private manufacturing purchasing managers index (PMI) declined more than expected in October. Business confidence over the next 12 months weakened and reached the lowest level since September of 2022. The Caixin manufacturing PMI for October came in at 49.5 versus 50.6 in September and 50.8 expected. A reading below 50.0 suggests contraction in the sector.
The key outside markets today see the U.S. dollar index higher. Nymex crude oil prices are up and trading around $82.00 a barrel. The yield on the benchmark U.S. Treasury 10-year note is presently fetching 4.899%.
|Gold needs a decisive break above $2,000 as investors turn their attention to the Fed|
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the ADP national employment report, the U.S. manufacturing purchasing managers index (PMI), the ISM report on business manufacturing, the weekly DOE liquid energy stocks report, domestic auto industry sales and construction spending.
Technically, the gold futures bulls have the near-term technical advantage. Prices are still trending higher on the daily bar chart. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $2,050.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,950.00. First resistance is seen at $2,000.00 and then at $2,010.00. First support is seen at the overnight low of $1,983.70 and then at $1,973.60. Wyckoff's Market Rating: 6.0
The silver bulls have the slight overall near-term technical advantage. However, an uptrend on the daily bar chart has stalled out. Silver bulls' next upside price objective is closing December futures prices above solid technical resistance at $24.05. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at $23.00 and then at $23.50. Next support is seen at last week’s low of $22.565 and then at $22.25. Wyckoff's Market Rating: 5.5.
If you have not done so, I encourage you to try out my new “Markets Front Burner” email report. I think it’s one of my best products yet (free!) in my 40-year quest to help you become a better trader and investor. It’s a weekly email report that highlights the latest developments in the marketplace, and how you can better manage those developments in your own trading/investing. Just try it for one week—I guarantee you will want to keep it coming. Sign up to my new, free weekly Markets Front Burner newsletter, at https://www.kitco.com/services/markets-front-burner.html .