Gold, silver bulls hoping for help from easy FOMC

(Kitco News) - Gold and silver prices are weaker in early-afternoon New York trading Tuesday. The gold and silver bulls have faded this week as competing-asset U.S. stock market saw its indexes on Monday hit record highs. That is presently squelching demand for the safe-haven metals. December gold futures were last down $4.10 an ounce at 1,491.70. December Comex silver prices were last down $0.031 at $17.69 an ounce.

Veteran market watchers know traders are fickle, especially the shorter-term ones. Thus, focus on Wednesday will shift from a bullish U.S. stock market to a Federal Reserve FOMC meeting that is widely expected to lean easy and lower U.S. interest rates by 0.25%. At first blush such a scenario should be friendly for the metals markets. However, what is not so clear is the glide path the Fed will take on future monetary policy moves. Such may be divulged in the FOMC statement and following press conference from Chairman Jerome Powell. Look for active trading in the markets, including the metals, in afternoon trading Wednesday following the FOMC statement and amid Powell’s presser.

It’s a very big U.S. economic data week. Also on Wednesday morning the gross domestic product report is out, and on Friday comes the employment report from the Labor Department. Other key reports are also out this week.

Asian and European stock indexes were mostly weaker in quieter trading overnight. Trader and investor optimism worldwide remains elevated early this week amid reports from China and the U.S. that their Phase 1 part of a trade deal is nearly ready for signing.

The key “outside markets” find Nymex crude oil prices slightly weaker in midday U.S. action today and trading around $55.75 a barrel. Meantime, the U.S. dollar index is slightly lower. 

Technically, December gold futures prices were near mid-range at midday and are now back in the middle of a choppy trading range. The bulls still have the overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,525.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the October low of $1,465.00. First resistance is seen at $1,500.00 and then at this week’s high of $1,510.80. First support is seen at today’s low of $1,485.60 and then at $1,478.00. Wyckoff's Market Rating: 6.5

December silver futures prices were nearer the session high at midday. The silver bulls still have the overall near-term technical advantage. A four-week-old uptrend is in place on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $18.35 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.18. First resistance is seen at $18.00 and then at this week’s high of $18.145. Next support is seen at today’s low of $17.605 and then at last week’s low of $17.44. Wyckoff's Market Rating: 6.5.

December N.Y. copper closed up 95 points at 269.25 cents today. Prices closed nearer the session high today and hit a six-week high. The copper bulls have gained the slight overall near-term technical advantage as prices have been trending up for four weeks. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 270.65 cents. The next downside price objective for the bears is closing prices below solid technical support at 254.00 cents. First resistance is seen at 270.65 cents and then at 273.00 cents. First support is seen at today’s low of 267.25 cents and then at 265.90 cents. Wyckoff's Market Rating: 5.5.