(Kitco News) - Gold and silver futures prices are lower in midday U.S. trading Wednesday, on some profit-taking following gains scored earlier this week and on a slight uptick in risk appetite today. The just-released Federal Reserve FOMC statement following the conclusion of its two-day meeting saw the central bank make no changes in U.S. monetary policy, as expected by the marketplace. The statement said the U.S. economic expansion remains “solid,” but the risks of higher inflation and unemployment have risen. The statement also said FOMC members see uncertainty increasing regarding the U.S. economic outlook. Gold and silver prices saw no significant price reactions to the FOMC news. June gold was last down $28.90 at $3,393.90. July silver prices were last down $0.596 at $32.785.
Traders now await the press conference from Fed Chair Jerome Powell, which will be very closely scrutinized for clues on the trajectory of Fed monetary policy in the weeks and months ahead. Wording on inflationary pressures will also be very important to the marketplace, as will the central bank’s latest take on trade tariffs and the global trade war.
U.S. stock indexes are weaker in afternoon trading. Risk appetite had improved just a bit overnight as reports say U.S. and Chinese officials are set to meet in Switzerland late this week to discuss trade. U.S. Treasury Secretary Scott Bessent will lead the U.S. delegation. However, the marketplace does not expect much results from this meeting and the U.S. stock indexes lost altitude as the day session progressed.
In other news, China’s central bank said today it will lower its interest rates and inject more liquidity into its financial system in an effort to boost the Chinese economy. The moves by the People’s Bank of China are not seen as aggressive.
Traders and investors are keeping an eye on developments in India and Pakistan. Reports say Pakistan has vowed to retaliate after India carried air strikes with 26 people reported killed. India said it carried out air strikes on nine terrorist camps in Pakistan and the disputed region of Kashmir. India said it targeted the planners of the Pahalgam attack that claimed 25 lives in late April as a result of a terrorist attack. Said broker SP Angel: “We would not be surprised if the attacks were pre-cleared with the Pakistan government. It might be difficult for the Pakistan government to attack and contain certain terrorist groups within its own territory.”
The key outside markets today see the U.S. dollar index firmer. Nymex crude oil futures prices are lower and trading around $58.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.275%.
Technically, June gold futures bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the contract/record high of $3,509.90. Bears' next near-term downside price objective is pushing futures prices below solid technical support at last week’s low of $3,209.40. First resistance is seen at the overnight high of $3,448.20 and then at $3,475.00. First support is seen at the overnight low of $3,367.00 and then at Tuesday’s low of $3,332.10. Wyckoff's Market Rating: 7.5.
July silver futures bulls have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $34.015. The next downside price objective for the bears is closing prices below solid support at $31.00. First resistance is seen at the overnight high of $33.48 and then at $34.015. Next support is seen at today’s low of $32.725 and then at $32.50. Wyckoff's Market Rating: 6.0.
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