(Kitco News) - Gold and silver prices are up a bit in subdued early U.S. trading Monday, ahead of the U.S. data point of the week: the FOMC meeting of the Federal Reserve that begins Tuesday morning and ends Wednesday afternoon with a statement and then a press conference from Fed Chair Jerome Powell. The Fed is widely expected to do a 0.25% interest rate cut. February gold was last up $5.70 at $2,681.50 and March silver was up $0.132 at $31.16.
Goldman Sachs no longer sees another Federal Reserve interest rate cut in January and the investment bank expects Powell to deliver that message at this week’s FOMC statement and Powell’s press conference Wednesday afternoon.
Asian and European stock indexes were mixed but mostly lower overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins.
In overnight news, Bitcoin rose to a record high above $106,000 by ongoing optimism over President-elect Trump’s support for crypto currencies.
Retail sales in China were much weaker than expected in November, highlighting the urgency for Beijing to further stimulate the Chinese economy. Stocks there fell and government bond yields dropped to a new record low.
French stocks and bonds dropped after Moody’s lowered France’s credit rating, adding to pressure on French officials to cut the budget deficit.
German Chancellor Olaf Scholz will submit to a parliamentary vote of confidence today. Reports say will likely lose the vote to trigger a snap election.
The key outside markets today see the U.S. dollar index near steady. Nymex crude oil futures prices are lower and trading around $70.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.377%.
U.S. economic data due for release Monday includes the Empire State manufacturing survey, the U.S. flash and services purchasing managers indexes (PMIs) and the ISM semiannual report on business and the economy.
Technically, February gold bulls have the overall near-term technical advantage but have faded. Prices are still in an uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at this week’s high of $2,761.30. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,629.70. First resistance is seen at $2,700.00 and then at Friday’s high of $2,716.40. First support is seen at the overnight low of $2,661.40 and then at $2,650.00. Wyckoff's Market Rating: 6.5.
March silver futures bulls have the slight overall near-term technical advantage but have faded. Silver bulls' next upside price objective is closing prices above solid technical resistance at this week’s high of $33.33. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen at Friday’s high of $31.63 and then at $32.00. Next support is seen at last week’s low of $30.755 and then at $30.50. Wyckoff's Market Rating: 5.5.
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