(Kitco News) – Gold and silver prices are moderately down in early U.S. trading Tuesday. The gold and silver bulls are fading this week as the U.S. stock market saw its indexes on Monday hit record highs, which is squelching demand for the safe-haven metals. December gold futures were last down $4.60 an ounce at 1,491.30. December Comex silver prices were last down $0.186 at $17.69 an ounce.
It’s a very big U.S. economic data week, highlighted by the Federal Reserve’s Open Market Committee (FOMC) meeting that starts Tuesday morning and ends Wednesday afternoon with a statement. It’s widely expected the Fed will cut interest rates by 0.25%. What is not so clear is the glide path the Fed will issue on future monetary policy moves. Look for active trading in the markets, including the metals, in afternoon trading Wednesday following the FOMC statement.
Also on Wednesday the gross domestic product report is out, and on Friday comes the employment report from the Labor Department. Other key reports are also out this week.
Asian and European stock indexes were mostly weaker in quieter trading overnight, as the FOMC meets today. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. The S&P 500 and Nasdaq indexes scored record highs on Monday. Trader and investor optimism remains elevated early this week amid reports from China and the U.S. that their Phase 1 part of a trade deal is nearly ready for signing.
The key “outside markets” find Nymex crude oil prices weaker in early U.S. trading today and trading around $55.00 a barrel. Meantime, the U.S. dollar index is slightly higher.
U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, the S&P/Case-Shiller home price index, pending home sales, and the consumer confidence index.
Technically, the gold bulls have the overall near-term technical advantage but are fading this week. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,525.00. Bears’ next near-term downside price breakout objective is pushing December futures prices below solid technical support at the October low of $1,465.00. First resistance is seen at the overnight high of $1,497.10 and then at $1,500.00. First support is seen at the overnight low of $1,486.50 and then at $1,478.00. Wyckoff’s Market Rating: 6.5
December silver futures bulls have the overall near-term technical advantage. Prices have been trending higher for four weeks. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $18.35 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at last week’s low of $17.44. First resistance is seen at the overnight high of $17.875 and then at $18.00. Next support is seen at the overnight low of $17.605 and then at $17.50. Wyckoff’s Market Rating: 6.5.
By Jim Wyckoff
For Kitco News
Contact jwyckoff@kitco.com
www.kitco.com
