(Kitco News) - Gold prices are modestly up in midday U.S. trading Tuesday, but down from earlier highs that saw the yellow metal hit record highs. Some mild profit taking from the shorter-term futures traders pulled the gold market down from its daily highs. Silver prices are slightly down, also on profit taking after scoring a 14-year high early today. Ideas of an easier monetary policy from the Federal Reserve in the coming months have been boosting the two precious metals. December gold was last up $4.20 at $3,723.30. December silver prices were down $0.167 at $43.80.
The Federal Reserve’s Open Market Committee (FOMC) meeting began this morning and ends Wednesday afternoon with a statement and press conference from Fed Chairman Jerome Powell. The FOMC is widely expected to deliver a 25-basis point interest rate cut, which would be the first since November of 2024. The decision comes amid criticism the Fed has been slow to react to weakening U.S. economic data. Updated Fed projections on Wednesday may show slower U.S. growth and rising unemployment, while Fed Chair Jerome Powell is set to face sharp questioning on Fed monetary policy at his post-meeting press conference Wednesday afternoon.
In other news, there are signs of progress in the U.S.-China trade talks held in Madrid, Spain. President Trump and Chinese President Xi Jinping are set to speak Friday to finalize some terms, with discussions also covering the divestment of Chinese-owned TikTok. U.S. Treasury Secretary Scott Bessent said the commercial terms for the TikTok deal had already been settled. Better U.S.-China trade relations likely mean better economic growth for both nations, and that’s bullish for gold and silver from a demand perspective.
The key outside markets today see the U.S. dollar index lower and hit a seven-week low, while crude oil prices are higher and trading around $64.50 a barrel. Both markets are also in a daily friendly posture for the gold and silver markets. The yield on the benchmark 10-year U.S. Treasury note is presently 4.026%.
Technically, December 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 $3,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,600.00. First resistance is seen at the contract high of $3,739.30 and then at $3,775.00. First support is seen at the overnight low of $3,711.80 and then at $3,700.00. Wyckoff's Market Rating: 9.0.
December silver futures bulls have the strong overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $45.00. The next downside price objective for the bears is closing prices below solid support at $41.00. First resistance is seen at today’s high of $43.435 and then at $44.00. Next support is seen at this week’s low of $42.47 and then at $42.00. Wyckoff's Market Rating: 9.0.
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