Gold, Silver Weaker As U.S. Dollar Index Gains; Little Reaction To FOMC

(Kitco News) - Gold and silver prices are just modestly lower in early-afternoon U.S. trading Thursday. A rebound in the U.S. dollar index today, following selling pressure this week, worked against the precious metals market bulls. The metals markets showed no significant reactions to the just-released FOMC minutes that show no change in U.S. monetary policy. December gold futures were last down $2.50 an ounce at $1,226.30. December Comex silver was last down $0.129 at $14.43 an ounce.

Focus today was on the conclusion of the Federal Reserve’s Open Market Committee (FOMC) meeting that began Wednesday morning and ended with a statement this afternoon. No change in U.S. interest rates is expected. The FOMC statement said to expect more incremental rate hikes coming down the road. Fed Chairman Jay Powell’s will not hold a press conference this afternoon.

Risk appetite in the world marketplace is mostly upbeat following the U.S. mid-term elections that produced a divided Congress.

In overnight news, upbeat economic data out of China defied expectations that its trade war with the U.S. is crimping its economy. China’s exports in October rose by 15.6%, year-on-year. That handily beat expectations of an 11% increase. Imports in October were up 21.4%, year-on-year. Imports from the U.S. dropped 1.8%. This data suggests China could be in no hurry to settle its trade dispute with the U.S. However, as has been the case for years, some do question the veracity of China’s economic numbers.

The other key “outside market” today finds Nymex crude oil prices lower, hitting a seven-month low and trading just below $62.00 a barrel. The severely down-trending crude oil market is a bearish element for the raw commodity sector, including the metals markets.

Technically, the gold bulls and bears are on a level overall near-term technical playing field. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the October high of $1,246.00. Bears' next near-term downside price breakout objective is pushing December futures prices below solid technical support at last week’s low of $1,213.40. First resistance is seen at $1,230.00 and then at this week’s high of $1,238.40. First support is seen at today’s low of $1,220.80 and then at $1,213.40. Wyckoff's Market Rating: 5.0

The silver bears have the overall near-term technical advantage, but recent price action suggests a market low was put in place in September. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $15.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the September low of $13.965. First resistance is seen at this week’s high of $14.775 and then at the October high of $14.95. Next support is seen at last week’s low of $14.24 and then at $14.00. Wyckoff's Market Rating: 2.5.

December N.Y. copper closed down 220 points at 273.25 cents today. Prices closed nearer the session high. The copper bears have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 287.10 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 257.45 cents. First resistance is seen at Wednesday’s high of 277.30 cents and then at 280.00 cents. First support is seen at today’s low of 270.30 cents and then at 267.00 cents. Wyckoff's Market Rating: 3.0.