(Kitco News) – Gold prices are a bit higher in early U.S. trading Wednesday, but prices will likely tread water and remain not far from unchanged levels ahead of this afternoon’s conclusion of the FOMC meeting. February gold futures were last up $2.00 an ounce at 1,470.10. March Comex silver prices were last down $0.007 at $16.695 an ounce.
Asian and European stock indexes were mixed weaker overnight. The U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. This Sunday (Dec. 15) is the deadline for new U.S. trade tariffs going into effect against Chinese goods imported into the U.S. While the rhetoric this week has been mostly upbeat on the matter, the history of the U.S.-China trade war is one of distinct highs and lows regarding progress toward a deal. And the marketplace knows President Trump’s mercurial personality. Thus, markets and traders are likely to remain tentative the rest of this week, and slightly leaning toward risk aversion.
Traders and investors are also awaiting the U.S. economic highlight of the week: the Federal Reserve’s Open Market Committee meeting (FOMC) that began Tuesday morning and ends Wednesday afternoon with a statement. The Fed is expected to make no changes in its monetary policy. However, the FOMC statement and Fed Chairman Powell’s press conference will be closely scrutinized for clue on futures monetary policy moves. The European Central Bank also meets on monetary policy Thursday.
The key “outside markets” today see the U.S. dollar index firmer. Meantime, Nymex crude oil prices are weaker and trading around $59.00 a barrel.
Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the consumer price index, real earnings, the monthly Treasury budget statement and the weekly DOE liquid energy stocks report.
Technically, the gold bulls and bears are on a level overall near-term technical playing field amid choppy and sideways trading recently. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at $1,500.00. Bears’ next near-term downside price breakout objective is pushing futures prices below solid technical support at the November low of $1,453.10. First resistance is seen at this week’s high of $1,473.70 and then at $1,480.00. First support is seen at this week’s low of $1,463.00 and then at $1,456.60. Wyckoff’s Market Rating: 5.0
March silver futures bears have regained the overall near-term technical advantage and restarted a more-than-three-month-old downtrend on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $17.415 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at $17.00 and then at $17.25. Next support is seen at this week’s low of $16.565 and then at $16.50. Wyckoff’s Market Rating: 4.0.
By Jim Wyckoff
For Kitco News
Contact jwyckoff@kitco.com
www.kitco.com
