(Kitco News) - Gold and silver prices are solidly lower in early U.S. trading Wednesday, on profit taking from the shorter-term futures traders after gold hit a record high and silver a 14-year high on Tuesday. Position evening is also featured ahead of today’s U.S. interest rate decision. December gold was last down $23.90 at $3,701.40. December silver prices were down $0.942 at $41.965.
The Federal Reserve’s Open Market Committee (FOMC) meeting that began Tuesday morning ends this afternoon with a statement and press conference from Fed Chairman Powell. The FOMC is widely expected to do a 25-basis point cut for the Fed funds rate trading range, which would be the first since November of last year. This afternoon will also see updated Fed projections that may show slower U.S. economic growth and rising unemployment. Reporters will grill Powell at his press conference this afternoon, not only on the trajectory of the U.S. economy and interest rates but also on the Fed’s independence.
Global stocks were mostly firmer overnight. U.S. stock indexes are pointed to mixed openings when the New York day session begins.
In overnight news, China’s internet watchdog has instructed companies including Alibaba and ByteDance to terminate orders for Nvidia Corp.’s RTX Pro 6000D computer chip, the Financial Times reported. The Cyberspace Administration of China told companies this week to stop testing the chip and cancel existing orders, according to the FT. Before that edict, several Chinese companies had indicated they would order tens of thousands of the chips, which Nvidia introduced to get around restrictions on the shipment of advanced AI chips to China, the FT said. This news comes as the U.S. and China both said they had made progress in trade talks held in Madrid, Spain earlier this week.
The key outside markets today see the U.S. dollar index up a bit, while crude oil prices are weaker and trading around $64.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.02%.
Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, new residential construction and the weekly DOE liquid energy stocks report.
Technically, December 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 $3,800.00. 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 overnight high of $3,732.80 and then at this week’s high of $3,739.90. First support is seen at the overnight low of $3,695.40 and then at $3,675.00. Wyckoff's Market Rating: 8.5.
December silver futures bulls have the solid 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 $40.00. First resistance is seen at $42.50 and then at $43.00. Next support is seen at the overnight low of $41.55 and then at $41.08. Wyckoff's Market Rating: 8.0.
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