(Kitco News) - Gold prices are moderately higher in early U.S. trading Wednesday, as the marketplace awaits an important report from the Federal Reserve later today. December gold was last up $13.50 at $3,372.10. September silver prices were down $0.192 at $37.14.
This afternoon’s minutes from the last meeting of the Federal Reserve’s Open Market Committee (FOMC) will be parsed by the marketplace for clues on the near-term trajectory of U.S. monetary policy. Stock and financial markets have been quieter this week, ahead of the annual Jackson Hole Fed symposium that gets into full swing Thursday and is hosted by the Kansas City Federal Reserve. Fed Chairman Jerome Powell speaks on Friday morning and is expected to update the Fed's monetary policy framework. Powell's speech could give the marketplace a new perspective on how much FOMC support there is to lower U.S. interest rates in September.
Global stock markets were mixed overnight. U.S. stock indexes are set to open just a bit weaker when the New York day session begins.
In overnight news, U.S. Treasury Secretary Scott Bessent said in a television interview Tuesday the U.S. is satisfied with the current tariff set up with China. Bessent said "we're very happy" with the situation with China and "the status quo is working pretty well.” The Trump administration has dialed down its confrontational tone with China recently in order to get a summit with Chinese Premier Xi Jinping, and to get a trade deal. “China is the biggest revenue line in the tariff income, so if it’s not broke, don’t fix it,” Bessent said in the interview. “We have had very good talks with China. I imagine we’ll be seeing them again before November,” he said.
India's state-run refiners have returned to buying Russian crude oil after a brief pause, despite facing higher tariffs and criticism from Trump administration officials. Bloomberg reports processors, including Indian Oil Corp. and Bharat Petroleum Corp., bought cargoes of Russian Urals for loading in September and October, according to traders familiar with the matter. The discount for Urals has deepened to $2.50 a barrel to Dated Brent, which has likely provided added incentive for India's oil refiners to return to buying the grade, traders said.
The key outside markets today see the U.S. dollar index near steady, with crude oil prices up and trading around $63.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.32%.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the FOMC minutes and the weekly DOE liquid energy stocks report.
Technically, December gold futures bulls have the 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 July low of $3,319.20. First resistance is seen at $3,400.00 and then at this week’s high of $3,403.60. First support is seen at the overnight low of $3,353.40 and then at $3,350.00. Wyckoff's Market Rating: 6.5.
September 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 $39.91. The next downside price objective for the bears is closing prices below solid support at the July low of $36.28. First resistance is seen at $37.50 and then at $38.00. Next support is seen at $36.50 and then at $36.28. Wyckoff's Market Rating: 6.5.
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