(Kitco News) - Gold prices are modestly lower and trading near the session low in early U.S. trading Wednesday. The U.S. ADP national employment report for January, just released, showed a big miss to the upside of expectations, at a gain of 246,000. That’s about 80,000 above the consensus forecast. Gold prices had been trading slightly higher just before the ADP report was released. April Comex gold was last down $3.70 an ounce at $1,207.70. March Comex silver was last down $0.073 at $17.47 an ounce.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.2924175530478188)
It’s going to be a very busy data day for the U.S. markets Wednesday. The Federal Reserve’s FOMC meeting that began Tuesday morning ends Wednesday afternoon with a statement. No change in U.S. interest rates or monetary policy is expected. However, the wording of today’s FOMC statement will be closely scrutinized for clues regarding the future path of monetary policy.
Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the U.S. manufacturing PMI, construction spending, the ISM manufacturing report on business, the global manufacturing PMI, domestic auto industry sales, and the weekly DOE liquid energy stocks report.
The U.S. dollar index is higher in early U.S. trading Wednesday, after dropping to a six-week low on Tuesday. The ADP report gave the dollar a boost. However, President Trump made comments Tuesday that suggested he wants to see a depreciating greenback on world currency markets.
The other key “outside market” on Wednesday sees Nymex crude oil prices trading firmer. After one-month of curtailing its collective crude oil output, the OPEC oil cartel has appeared to help stabilize world oil prices, which are trading between $50 and $55 a barrel in Nymex futures.
Traders are also starting to look just ahead to Friday’s U.S. employment report for January from the Labor Department. The key non-farm payrolls number of the report is expected to come in at up 175,000. However, with the stronger ADP report, the more important Friday jobs number could come in stronger than the present forecasts.
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Technically, April gold futures bears still have the overall near-term technical advantage. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the January high of $1,223.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,160.00. First resistance is seen at this week’s high of $1,217.40 and then at $1,223.00. First support is seen at $1,200.00 and then at Tuesday’s low of $1,195.60. Wyckoff’s Market Rating: 3.5
March silver bulls and bears are on a level overall near-term technical playing field as prices Tuesday hit a 2.5-month high. Silver bulls’ next upside price breakout objective is closing futures prices above solid technical resistance at $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.50. First resistance is seen at Tuesday’s of $17.635 and then at $17.75. Next support is seen at $17.36 and then at $17.00. Wyckoff's Market Rating: 5.0.
By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow Jim Wyckoff @jimwyckoff
