(Kitco News) - Gold prices are moderately higher and silver prices slightly lower in early U.S. trading Wednesday. Today, specifically this afternoon, may be the most active trading day in quite some time, as the highly anticipated U.S. central bank meeting comes to an end. December gold was last up $10.60 at $2,603.00 and December silver was down $0.034 at $30.945.
Trading this afternoon could be volatile. The Federal Reserve’s Open Market Committee meeting (FOMC) that began Tuesday morning ends this afternoon with a statement, press conference from Fed Chairman Jerome Powell and the Fed’s “dot plots.” The marketplace thinking slightly favors a 0.5% rate cut, after earlier reckoning a 0.25% rate cut was most likely. This would be the first rate cut by the Fed in 4.5 years. Rarely has there been such uncertainty regarding the size of an expected interest rate move by the Fed. Thus, volatility could be high in many markets after the Fed’s statement is released at 2:00 p.m. EDT. The Bank of England and the Bank of Japan hold their regular monetary policy meetings Thursday.
Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed to slightly higher openings when the New York day session begins.
In other news, tensions are higher in the Middle East at mid-week following the simultaneous exploding of thousands of pagers used by Hezbollah militia members, including an Iranian official. Reports said 2,750 people were injured and at least nine were killed. Israel is widely blamed for the elaborate scheme, which will likely prompt a miliary response from Hezbollah.
The key outside markets today see the U.S. dollar index slightly weaker. Nymex crude oil prices are lower and trading around $70.25 a barrel. The benchmark 10-year U.S. Treasury note yield is on the decline and is presently fetching 3.65%.
Other U.S. economic data releases Wednesday includes the weekly MBA mortgage applications survey, new residential construction and the weekly DOE liquid energy stocks report.
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 the record high of $2,617.40 and then at $2,625.00. First support is seen at this week’s low of $2,587.30 and then at $2,570.40. Wyckoff's Market Rating: 9.0.
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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