Gold Prices Back Off On Hawkish FOMC Statement; Yellen On Deck

(Kitco News) - Gold prices were modestly lower in U.S. early-afternoon trading Wednesday, in the wake of an FOMC statement that has been deemed friendly to the U.S. monetary policy hawks. Losses in gold are limited, however, by some safe-haven demand for gold today after a fiery speech given by U.S. President Trump at the U.N. Tuesday. December Comex gold was last down $2.20 an ounce at $1,308.70. December Comex silver prices were last down $0.019 at $17.26 an ounce.

The Federal Reserve’s Open Market Committee (FOMC) meeting ended Wednesday afternoon with a statement that showed no interest rate change, as expected. The statement said the Fed will start to shrink its balance sheet by $10 billion a month starting in October. That rate will progressively increase. The tone of the statement suggested there is still a good chance the Fed will raise U.S. interest rates in December. The marketplace read that as favoring the monetary policy hawks.

Fed Chair Janet Yellen will soon hold a press conference, as of this writing. Also, the Federal Reserve will release new economic projections. The inflation projections will be examined very closely.

The U.S. dollar index rallied in the aftermath of the FOMC statement, while U.S. Treasuries and the U.S. stock market sold off modestly.

Technically, December gold futures prices were nearer the session low in afternoon trading. The gold bulls still have the overall near-term technical advantage, but have faded and need to show fresh power soon to avoid serious near-term technical damage, including a price uptrend on the daily chart being negated. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,340.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00. First resistance is seen at today’s high of $1,319.80 and then at $1,324.00. First support is seen at $1,300.00 and then at $1,290.00. Wyckoff's Market Rating: 6.0

December silver futures were nearer the session low in afternoon trading. The silver 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 $18.29 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 today’s high of $17.445 and then at $17.50. Next support is seen at this week’s low of $17.11 and then at $17.00. Wyckoff's Market Rating: 6.0.

December N.Y. copper closed down 35 points at 296.50 cents today. Prices closed nearer the session low. The copper bulls still have the overall near-term technical advantage, but have faded recently. More selling pressure this week would suggest a near-term market top is in place. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 317.85 cents. The next downside price objective for the bears is closing prices below solid technical support at 280.00 cents. First resistance is seen at 300.00 cents and then at 304.00 cents. First support is seen at last week’s low of 293.10 cents and then at 290.00 cents. Wyckoff's Market Rating: 6.0.