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(Kitco News) - Gold and silver prices not straying too far from unchanged in early U.S. trading Wednesday. The markets are pausing ahead of another U.S. inflation report and the FOMC meeting results. August gold was last up $11.00 at $1,959.60 and July silver was up $0.083 at $23.905.
Global stock markets were mixed overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. Traders are awaiting Wednesday morning's U.S. producer price index report for May, which is seen down 0.1%, month-on-month. A Wall Street Journal headline reads: "Inflation cut in half in May from peak last year."
The U.S. data point of the week is the FOMC meeting of the Federal Reserve, that began Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chairman Powell. A majority of the marketplace thinks the Fed will pause in its interest-rate-tightening cycle. Tuesday's CPI report that came in as expected at up 4.0%, year-on-year, falls into the camp of those expecting the Fed to pause at this week's FOMC meeting. The European Central Bank meets Thursday and is expected to raise its main interest rate by 25 basis points.
The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are higher and trading around $70.50 a barrel. Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching 3.81%.
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| Why is gold price down as markets price in a pause after 10 consecutive rate hikes? |
Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey 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 overall near-term technical advantage. Bulls' next upside price objective is to produce a close in August futures above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the May low of $1,949.60. First resistance is seen at $1,975.00 and then at last week's high of $1,987.80. First support is seen at this week's low of $1,953.00 and then at the May low of $1,949.60. Wyckoff's Market Rating: 6.5
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
The silver bulls have the overall near-term technical advantage and are working on a price uptrend on the daily bar chart. Silver bulls' next upside price objective is closing July futures prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at the May low of $22.785. First resistance is seen at this week's high of $24.52 and then at last week's high of $24.62. Next support is seen at this week's low of $23.665 and then at $23.50. Wyckoff's Market Rating: 6.5.
