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(Kitco News) - Gold prices are higher and silver near steady in early U.S. trading Wednesday. The precious metals markets are seeing some position-evening ahead of the FOMC meeting conclusion early this afternoon. August gold was last up $10.10 at $1,973.70 and September silver was down $0.019 at $24.81.
The U.S. data point of the week, if not the month, is the Federal Reserve’s Open Market Committee (FOMC) meeting that began 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. Given the virtual certainty of a quarter-point rate hike, Powell’s press conference is likely to be the bigger markets-mover this afternoon. Traders want to see if Powell continues to lean hawkish on U.S. monetary policy, or if he eases up a bit given the tamer U.S. inflation readings recently.
Asian and European stock markets were mostly lower in overnight trading. U.S. stock indexes are pointed toward weaker openings when the New York day session begins.
The key outside markets today see the U.S. dollar index lower. Meantime, Nymex crude oil prices are weaker and trading around $78.75 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.891%.
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| Gold-backed BRICS currency off the agenda for now, but bloc expansion will jeopardize petrodollar - Lobo Tiggre |
Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, new residential sales 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. Prices are in a four-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 $1,980.00 and then at the July high of $1,989.80. First support is seen at the overnight low of $1,963.20 and then at this week’s low of $1,951.60. Wyckoff's Market Rating: 6.0
![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 this week’s low of $24.425 and then at $24.00. Wyckoff's Market Rating: 6.5.
