(Kitco News) - Gold and silver prices are down a bit in early U.S. trading Wednesday. The marketplace has been subdued so far this week, ahead of the Federal Open Market Committee (FOMC) monetary policy meeting conclusion Wednesday afternoon that sees a statement and press conference from Fed Chairman Jerome Powell. No change in Fed policy is expected, but as always the marketplace will parse the statement and Powell’s presser for clues on the future path and timing of monetary policy. April gold was last down $3.60 at $2,156.10. May silver was last down $0.125 at $25.01.
The Bank of England holds its regular monetary policy meeting Thursday.
Asian and European stock markets were mixed in overnight trading. U.S. stock index futures are set to open narrowly mixed when the New York day session begins.
In overnight news, European Central Bank president Christine Lagarde said if the ECB’s projections remain in line by June, the central bank can start “dialing back” interest rates.
The key outside markets today see the U.S. dollar index higher. The USDX has seen a solid rebound from the March low and the bulls have the technical advantage. Nymex crude oil prices are weaker and trading around $82.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 4.27%.
Other U.S. economic reports due out Wednesday include the weekly MBA mortgage applications survey and the weekly DOE liquid energy stocks report.
Technically, the gold futures bulls have the solid overall near-term technical advantage. A steep four-week-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at the contract high of $2,203.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,100.00. First resistance is seen at this week’s high of $2,167.20 and then at $2,180.00. First support is seen at this week’s low of $2,149.20 and then at $2,140.00. Wyckoff's Market Rating: 8.0.
The silver bulls have the firm overall near-term technical advantage. Prices hit a three-month high Friday. Silver bulls' next upside price objective is closing May futures prices above solid technical resistance at the December high of $26.575. The next downside price objective for the bears is closing prices below solid support at $24.00. First resistance is seen at Tuesday’s high of $25.36 and then at last week’s high of $25.66.
Next support is seen at the overnight low of $24.92 and then at $24.50. Wyckoff's Market Rating: 7.0.
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