Gold, silver tread water just ahead of FOMC meeting
Gold prices are modestly down and silver slightly up in midday U.S. trading Monday. Gold is seeing a mild corrective pullback and a bit of profit taking from futures traders after prices last week hit a nine-month high, and just ahead of this week’s highly anticipated monetary policy meeting of the U.S. Federal Reserve. February gold was last down $6.00 at $1,923.40 and March silver was up $0.123 at $23.75.
The U.S. data point of the week is the Federal Reserve Open Market Committee (FOMC) meeting that begins Tuesday morning and ends Wednesday afternoon with a statement. Most believe the Fed will raise the key U.S. interest rate by 0.25%, following the recent 0.5% rate hikes. Trading in stock and financial markets early this week may be more muted ahead of the FOMC statement and press conference by Fed Chairman Jerome Powell Wednesday afternoon.
Global stock markets were mixed overnight. U.S. stock indexes are lower at midday, on downside corrections. Still, the U.S. stock indexes are in price uptrends on the daily bar charts and the stock index bulls have the overall near-term technical advantage.
Stock markets are set to crash 37% as 'sucker's rally' ends, gold and silver to 'take off' – Chris Vermeulen
The key outside markets today see the U.S. dollar index firmer. Nymex crude oil futures prices are down and trading around $78.75 a barrel. Oil traders are awaiting an OPEC-plus cartel meeting this Wednesday. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.557%.
Technically, February gold futures bulls still have the solid overall near-term technical advantage. A three-month-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,885.00. First resistance is seen at today’s high of $1,933.60 and then at the January high of $1,949.80. First support is seen at last week’s low of $1,912.50 and then at $1,900.00. Wyckoff's Market Rating: 8.0
March silver futures bulls have the overall near-term technical advantage. However, trading has been choppy and sideways for weeks. Silver bulls' next upside price objective is closing prices above solid technical resistance at the January high of $24.775. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at $24.400 and then at last week’s high of $24.415. Next support is seen at Friday’s low of $23.39 and then at $23.26. Wyckoff's Market Rating: 6.5.
March N.Y. copper closed down 310 points at 419.15 cents today. Prices closed nearer the session low today. Profit taking was featured. The copper bulls still have the solid overall near-term technical advantage. A four-month-old uptrend is in place on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 440.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 400.00 cents. First resistance is seen at today’s high of 424.90 cents and then at last week’s high of 430.25 cents. First support is seen at last week’s low of 417.20 cents and then at 411.05 cents. Wyckoff's Market Rating: 7.5.
By Jim Wyckoff
For Kitco News