(Kitco News) - Gold prices are slightly higher and hit new record highs in early U.S. trading Wednesday. Silver futures are slightly down. The precious metals bulls remain firmly in the driver’s seat just ahead of a major central bank’s monetary policy meeting conclusion. April gold was last up $6.20 at $3,047.00. May silver prices were last down $0.178 at $34.64.
The U.S. data point of the week is the Federal Reserve Open Market Committee (FOMC) meeting that began Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chair Powell. The marketplace expects no interest rate changes at this meeting, but it will closely parse wording coming from the FOMC statement and Powell’s presser.
Asian and European stock markets were mixed overnight. U.S. stock indexes are pointed to slightly higher openings when the New York day session begins. Risk aversion remains elevated at mid-week but maybe a bit less so as U.S. President Trump and Russian President Putin have agreed on a partial Russia ceasefire on Ukraine’s power grid for 30 days.
In overnight news, the Bank of Japan kept its main interest rate at 0.50%, in line with market expectations, citing concerns over the potential impact from U.S. tariff policies.
Gold prices hit new record highs overnight. Broker SP Angel today said in an email dispatch: “Gold continues to enter the mainstream, with fund managers boosting their allocations, seen in the jump in ETF holdings by 5% over the past 12 months. We would note that ETF holdings remain well below COVID levels, leaving ample room for further rallies as speculators enter the market.”
The key outside markets today see the U.S. dollar index higher. Nymex crude oil futures prices are slightly down and trading around $66.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.293%.
Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the weekly DOE liquid energy stocks report and Treasury international capital data.
Technically, April gold futures bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,100.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,900.00. First resistance is seen at the overnight contract high of $3,052.40 and then at $3,065.00. First support is seen at the overnight low of $3,031.30 and then at Tuesday’s low of $3,008.20. Wyckoff's Market Rating: 9.5.
May silver futures bulls have the firm overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the October 2024 high of $35.80. The next downside price objective for the bears is closing prices below solid support at $32.215. First resistance is seen at this week’s high of $35.00 and then at $35.50. Next support is seen at the overnight low of $34.27 and then at $34.00. Wyckoff's Market Rating: 7.0.
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