 | Get all the essential market news and expert opinions in one place with our daily newsletter. Receive a comprehensive recap of the day's top stories directly to your inbox. Sign up here! |
(Kitco News) - Gold and silver prices are not straying too far from unchanged levels in quieter early U.S. trading Monday, as traders await a key central bank decision at mid-week. August gold was last up $1.40 at $1,968.00 and September silver was down $0.015 at $24.84.
The U.S. data point of the week is the Federal Reserve’s Open Market Committee (FOMC) meeting that begins Tuesday and ends Wednesday afternoon with a statement. Most market watchers believe the Fed will raise the main U.S. rate, the Fed funds rate, by 0.25%. As usual, the marketplace will closely scrutinize the FOMC statement and Fed Chair Powell’s remarks at his press conference for clues on the trajectory of Fed monetary policy in the coming months.
A Barron’s news headline today reads: "Tech earnings, Fed rate call, inflation data—expect crucial answers this week."
Asian and European stock markets were mixed in quieter overnight trading. U.S. stock indexes are pointed toward slightly firmer openings when the New York day session begins. The U.S. stock indexes are hovering near their highs for the year.
The key outside markets today see the U.S. dollar index a bit firmer. Meantime, Nymex crude oil prices are firmer and trading around $77.50 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.807%.
|
| This is the gold price set up going into the Fed meeting next week |
U.S. economic data due for release Monday includes the Chicago Fed national activity index, and the U.S. flash services and manufacturing purchasing managers indexes (PMIs).
![Live 24 hours gold chart [Kitco Inc.]](/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, the gold futures bulls have the slight overall near-term technical advantage. Prices are in a three-week-old uptrend on the daily bar chart. 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 $1,900.00. First resistance is seen at Friday’s high of $1,975.90 and then at the July high of $1,989.80. First support is seen at last week’s low of $1,958.10 and then at $1,950.00. Wyckoff's Market Rating: 5.5
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
The silver bulls have the overall near-term technical advantage. A four-week-old uptrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing September futures prices above solid technical resistance at the April high of $26.645. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at $25.00 and then at the July high of $25.475. Next support is seen at $24.50 and then at $24.31. Wyckoff's Market Rating: 6.5.
