Gold Weaker, No Reaction To As-Expected FOMC Statement

(Kitco News) - Gold and silver prices are weaker in early-afternoon U.S. trading Wednesday. The metals and other markets showed little reaction to the just-released FOCM statement that showed no change in U.S. monetary policy. December gold futures were last down $4.30 an ounce at $1,229.40. September Comex silver was last down $0.089 at $15.47 an ounce.

The FOMC meeting of the Federal Reserve that began Tuesday morning ended this afternoon with a statement saw no changes in interest rates or Fed policy and none were expected at this meeting. The statement guided the marketplace toward more gradual rate increases down the road, which is exactly what most expected to hear from the Fed. There was also no wording in the statement that caught traders off-guard.

The Bank of England meets Thursday for its regular monetary policy gathering. No changes in policy are expected from the BOE.

This morning’s ADP national employment report for July showed a rise of 219,000. The number is higher than the expected rise of 185,000. This number comes ahead of the more important U.S. non-farm payroll number on Friday, which is forecast to come in at up 190,000 in July. The metals markets reacted little to the ADP news.

The key “outside markets” today find Nymex crude oil prices lower and trading just around $67.50 a barrel. The U.S. dollar index is slightly higher today. These two markets are in a bearish daily posture for the precious metals markets.

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Technically, the gold bears have the solid overall near-term technical advantage. There are still no strong, early clues to suggest a market bottom is close at hand.  A 3.5-month-old downtrend is in place on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,250.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at this week’s high of $1,237.80 and then at last week’s high of $1,244.70. First support is seen at $1,225.00 and then at this week’s low of $1,221.00. Wyckoff's Market Rating: 2.0

The silver bears have the solid overall near-term technical advantage. There are still no early clues to suggest a market bottom is close at hand. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $16.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.00. First resistance is seen at last week’s high of $15.70 and then at $15.90. Next support is seen at this week’s low of $15.38 and then at the July low of $15.185. Wyckoff's Market Rating: 2.5.

September N.Y. copper closed down 880 points at 274.30 cents today. Prices closed nearer the session low. The copper bears have the solid overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 300.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the July low of 267.35 cents. First resistance is seen at 280.00 cents and then at this week’s high of 282.85 cents. First support is seen at today’s low of 272.60 cents and then at 270.00 cents. Wyckoff's Market Rating: 1.5.