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(Kitco News) - Gold prices are slightly down and silver slightly up in early U.S. trading Tuesday, as the U.S. Federal Reserve begins its two-day policy-setting meeting this morning. August gold was last down $2.90 at $1,959.30 and September silver was up $0.134 at $24.715.
The U.S. data point of the week, if not the month, is the Federal Reserve’s Open Market Committee (FOMC) meeting that begins Tuesday morning 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.
Asian and European stock markets were mixed in quieter overnight trading. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. The U.S. stock index bulls are enjoying a low-volatility summertime rally, which suggests the price uptrends in the stock indexes can continue in the next few weeks.
In overnight news, Chinese officials said they plan to implement stimulus measures to support its ailing property sector. The move was seen as disappointing by China watchers, who wanted more stimulus action in the broader economy.
The key outside markets today see the U.S. dollar index firmer. Meantime, Nymex crude oil prices are near steady and trading around $78.75 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.9%.
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| Hedge funds testing gold waters as bullish sentiment hits 18-month high |
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook retail sales report, the monthly house price index, the S&P Case-Shiller home indexes, the Richmond Fed business survey, and the consumer confidence index.
![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 Monday’s high of $1,969.80 and then at last Friday’s high of $1,975.90. First support is seen at the overnight low of $1,954.60 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 Monday’s low of $24.425 and then at $24.00. Wyckoff's Market Rating: 6.5.
