(Kitco News) - Gold and silver prices are weaker in midday U.S. trading Tuesday, as the two precious metals are seeing some profit taking and position squaring by the shorter-term futures traders ahead of major central bank meetings occurring this week. December gold was last down $18.90 at $2,589.90 and December silver was down $0.175 at $30.97.
The Federal Reserve’s Open Market Committee meeting (FOMC) began Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chairman Jerome Powell. The marketplace thinking has shifted recently, now slightly favoring a 0.5% rate cut, after earlier reckoning a 0.25% rate cut was most likely. The CME’s FedWatch Tool is currently putting a 67% probability of a 50 basis-point cut, while the likelihood of the smaller 25 basis-point cut has slipped to 33%. The Bank of England and the Bank of Japan hold their regular monetary policy meetings Thursday.
Some stronger-than-expected U.S. economic data released this morning, including retail sales and industrial production, also likely pressured gold and silver as the U.S. dollar index pushed modestly higher following those reports.
Nymex crude oil prices are higher at midday and trading around $71.75 a barrel. The benchmark 10-year U.S. Treasury note yield is on the decline and is presently fetching around 3.6%.
Technically, December gold bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $2,700.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,500.00. First resistance is seen at $2,600.00 and then at the record high of $2,617.40. First support is seen at $2,570.40 and then at $2,550.00. Wyckoff's Market Rating: 8.5.
December silver futures bulls have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the July high of $32.46. The next downside price objective for the bears is closing prices below solid support at $29.00. First resistance is seen at this week’s high of $31.46 and then at $32.00. Next support is seen at $30.67 and then at $30.00. Wyckoff's Market Rating: 6.5
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