(Kitco News) - Gold and silver prices are a bit lower in early U.S. trading Wednesday, on downside corrections ahead of a U.S. interest rate increase from the Federal Reserve this afternoon. February gold was last down $6.00 at $1,819.60 and March silver was down $0.04 at $23.95.
Most stock and financial markets are pausing as major central bank meetings are taking place this week. The Federal Reserve’s Open Market Committee (FOMC) meeting that began Tuesday morning ends Wednesday afternoon with a statement, fresh economic projections and a press conference from Fed Chair Jerome Powell. The FOMC is likely to raise U.S. interest rates by 0.5%. The European Central Bank and the Bank of England meet on Thursday and are likely to follow the U.S. Federal Reserve with half-point rate hikes.
Global stock markets were mixed overnight, with European shares mostly lower and Asian shares mostly higher. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins.
The key outside markets today see the U.S. dollar index weaker. Prices Tuesday hit a 5.5-month low following a slightly cooler than expected U.S. consumer price index report. Nymex crude oil prices are firmer and trading around $76.00 a barrel. A major oil pipeline in the U.S. has been shut due to a leak, and that’s supporting Nymex crude oil prices this week. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently 3.5%.
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Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, import and export prices and the weekly DOE liquid energy stocks report.
![Live 24 hours gold chart [Kitco Inc.]](/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, the gold futures bulls have the firm overall near-term technical advantage. Prices are in a five-week-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,775.00. First resistance is seen at $1,825.00 and then at this week’s high of $1,836.90. First support is seen at $1,800.00 and then at this week’s low of $1,789.00. Wyckoff's Market Rating: 6.5
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
The silver bulls have the firm overall near-term technical advantage. A choppy, three-month-old uptrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing March 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 today’s high of $24.09 and then at this week’s high of $24.39. Next support is seen at Tuesday’s low of $23.49 and then at $23.00. Wyckoff's Market Rating: 7.0.
