(Kitco News) - Gold prices are a bit lower and silver prices a bit higher in quieter early U.S. trading Wednesday. The marketplace awaits the Fed’s FOMC meeting that ends Wednesday afternoon with a statement and press conference from Fed Chair Powell. The Fed is not expected to cut interest rates. However, traders will closely scrutinize the FOMC statement and Fed Chair Powell’s comments in his press conference this afternoon. August gold was last down $4.70 at $3,402.20. July silver prices hit a 13-year high overnight and were last up $0.059 at $37.21.
Asian and European stocks were mixed overnight. U.S. stock indexes are pointed to slightly higher openings today in New York. Risk aversion remains elevated at mid-week. Reports are saying President Trump is mulling striking Iranian nuclear sites with huge “bunker-buster” bombs, which many military analysts believe is necessary to set back Iran’s nuclear program for several years.
Writes David Morrison of Trade Nation in a morning email dispatch: Despite the Israel-Iran military conflict that may bring in the U.S., “there has been no sense of panic from investors. Of course, as far as the U.S. is concerned, events are taking place a long way from home…. But there’s also a feeling that investors are betting on a short and sharp engagement, resulting in a more stable position across the Middle East than the one that currently exists. Perhaps that’s a matter of considering recent history. But if so, that’s quite an optimistic outlook. And the question must be: Does that factor in US military engagement or not?”
The key outside markets today see the U.S. dollar index slightly down. Nymex crude oil futures prices are slightly higher and trading around $75.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.379%.
Other U.S. economic data due for release Wednesday the weekly MBA mortgage applications survey, new residential construction, the weekly jobless claims report, the weekly DOE liquid energy stocks report and Treasury international capital data.
Technically, August 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 $3,500.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the June low of $3,313.10. First resistance is seen at $3,427.70 and then at $3,450.00. First support is seen at this week’s low of $3,384.40 and then at $3,358.50. Wyckoff's Market Rating: 8.0.
July silver futures bulls have the solid overall near-term technical advantage and gained more power today. Prices are trending higher on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $40.00. The next downside price objective for the bears is closing prices below solid support at $35.00. First resistance is seen at $37.50 and then at $38.00. Next support is seen at $37.00 and then at $36.50. Wyckoff's Market Rating: 8.5.
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