(Kitco News) – Gold prices are just slightly higher in early-afternnon U.S. trading Tuesday, while silver prices are posting decent gains and hit a three-week high. Gold and many other markets are in a holding pattern ahead of the Federal Reserve’s Open Market Committee (FOMC) meeting decision Wednesday afternoon. A slightly lower U.S. dollar index today prompted some buying interest in the metals. December gold futures were last up $0.80 an ounce at $1,205.30. December Comex silver was last up $0.154 at $14.49 an ounce.
The two-day FOMC meeting that began Tuesday morning is expected to see the Fed slightly raise U.S. interest rates. Fed Chairman Jerome Powell will also hold a press conference after the meeting. As usual, the marketplace will parse the Fed’s wording for clues on the pace of future Fed rate hikes and the Fed’s inflation expectations.
World stock markets were mixed today. There are lingering worries the U.S. and China’s trade war will escalate to the point of damaging world commerce. Meanwhile, President Trump is negotiating bi-lateral trade deals with other Asian countries and has signed an agreement with South Korea.
President Trump gave a very nationalistic speech to the United Nations today, including criticizing Iran and China, but the markets did not react much to the speech.
The other key outside market today finds November Nymex crude oil prices slightly higher and trading just above $72.00 a barrel. Supply worries have boosted oil recently. U.S. sanctions against Iran begin in early November, which will likely take much of that country’s oil off the world market.
Technically, the gold bears still have the overall near-term technical advantage. However, prices have been trading sideways for the past month, which begins to suggest a market bottom is in place. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,220.70. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at the August low of $1,167.10. First resistance is seen at $1,210.00 and then at $1,215.80. First support is seen at Monday’s low of $1,198.60 and then at $1,192.70. Wyckoff’s Market Rating: 3.0
The silver bears still have the firm overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing December futures prices above solid technical resistance at $15.07 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $13.50. First resistance is seen at today’s high of $14.595 and then at $14.75. Next support is seen at this week’s low of $14.22 and then at last week’s low of $14.065. Wyckoff’s Market Rating: 2.5.
December N.Y. copper closed down 155 points at 282.00 cents today. Prices closed near mid-range today and saw more profit taking after hitting a seven-week high last Friday. The copper bears have the overall near-term technical advantage, but recent good gains suggest a market bottom is in place. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the 295.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 257.45 cents. First resistance is seen at today’s high of 284.80 cents and then at last week’s high of 287.10 cents. First support is seen at today’s low of 278.90 cents and then at 275.00 cents. Wyckoff’s Market Rating: 4.0.
By Jim Wyckoff
For Kitco News