Gold, Silver Trade Near Steady, Awaiting FOMC, BOJ Outcomes

(Kitco News) - Gold and silver prices ended the U.S. day session near unchanged levels in subdued trading Tuesday, ahead of two major central bank meetings that are arguably the most important markets events this month. December Comex gold was last up $0.40 an ounce at $1,318.20. December Comex silver was last down $0.005 at $19.285 an ounce.

Traders and investors await the results of the two-day meeting of the Federal Reserve’s Open Market Committee (FOMC). The meeting began today ends Wednesday afternoon with a statement. Most market watchers don’t think the Fed will raise interest rates at this meeting. The more likely date of any U.S. rate hike would be in December, according to the marketplace. However, bond king Bill Gross on Tuesday reportedly said there is a 50-50 chance the Fed will raise interest rates by 0.25% on Wednesday.

The Bank of Japan also met to discuss its monetary policy Tuesday. There is no clear consensus on the BOJ meeting’s outcome: whether more monetary stimulus will be initiated, and if so what—or whether the BOJ will stand pat. This uncertainty means the markets could be more impacted by the BOJ results that the FOMC results. The BOJ meeting’s results are due out sometime Wednesday morning, New York time.

Crude oil prices were weaker firmer early Tuesday afternoon on short covering in a market that is still technically bearish. The other key outside market on Tuesday saw the U.S. dollar index trade modestly higher.

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Technically, December gold futures prices closed near mid-range today in quieter trading. The gold bulls have the slight near-term technical advantage, as prices are not that far below this year’s high. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the September high of $1,357.60. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00. First resistance is seen at this week’s high of $1,321.80 and then at $1,325.00. First support is seen at last week’s low of $1,309.20 and then at the September low of $1,305.50. Wyckoff’s Market Rating: 5.5

December silver futures prices closed near mid-range. The silver market bulls have the overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the September high of $20.235 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the August low of $18.46. First resistance is seen at this week’s high of $19.38 and then at $19.50. Next support is seen at $19.00 and then at last week’s low of $18.715. Wyckoff's Market Rating: 6.0.

December N.Y. copper closed up 75 points at 216.40 cents today. Prices closed nearer the session high and hit a four-week high today. The copper bulls and bears are now on a level overall near-term technical playing field. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 225.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at this week’s low of 206.40 cents. First resistance is seen at today’s high of 217.25 cents and then at 220.00 cents. First support is seen at this week’s low of 213.90 cents and then at 212.00 cents. Wyckoff's Market Rating: 5.0.

By Jim Wyckoff, contributing to Kitco News; jwycko