Gold lower, shows little reaction as FOMC announces tapering

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(Kitco News) - Gold pricesare sharply down in afternoon U.S. dealings Wednesday. This afternoon’s FOMCstatement from the Federal Reserve saw the U.S. central bank announce it willbegin tapering its bond-buying program in November, by $15 billion. The FOMCstatement said December and following months will also likely see the paringback of bond-buying. The Fed said inflation remains elevated. Markets showedlittle reaction to the FOMC statement, as traders and investors had pretty muchdialed in what the Fed would do today, and that the tenor would favor thehawkish camp. Now, traders are awaiting Fed Chairman Jay Powell’s press conference.December gold was last down $22.40 at $1,766.20 and December Comex silver waslast down $0.197 at $23.315 an ounce.

Goldand silver markets fell to three-week lows today and their near-term priceuptrends have been negated-giving the bears some momentum.

Meantime,today’s U.S. ADP national employment report for October showed a gain of571,000, which was above expectations for a rise of 395,000 and comparesto a rise of 568,000 in the Septemberreport. Markets showed now significant reactions to the report. On Friday themore important U.S. employment situation report for October is due. The keynon-farm payrolls component of that report is expected to rise 450,000 comparedto a rise of 194,000 in the September report.

Globalstock markets were mixed to weaker in overnight trading. The U.S. stock indexesare mixed this afternoon. The U.S. indexes hit record highs on Tuesday.

Thekey outside markets today see the U.S. dollar index slightly lower. Nymex crudeoil prices are sharply lower and trading around $80.85 a barrel. Meantime, the10-year U.S. Treasury note yield is presently fetching 1.589%.

Technically,December gold futures prices hit a three-week low today. Bulls have lost theiroverall near-term technical advantage as a four-week-old price uptrend on thedaily bar chart has been negated. Bulls’ next upside price objective is toproduce a close above solid resistance at the October high of $1,815.50. Bears'next near-term downside price objective is pushing futures prices below solidtechnical support at the September low of $1,721.10. First resistance is seenat $1,775.00 and then at $1,785.00. First support is seen at today’s low of$1,758.50 and then at $1,750.00. Wyckoff's Market Rating: 5.0

December silver futures prices hit a three-week lowtoday. The silver bears have the overall near-term technical advantage. Silverbulls' next upside price objective is closing prices above solid technicalresistance at $25.00 an ounce. The next downside price objective for the bearsis closing prices below solid support at $22.00. First resistance is seen attoday’s high of $23.665 and then at $24.00. Next support is seen at $23.00 andthen at $22.75. Wyckoff's Market Rating: 4.0.

DecemberN.Y. copper closed down 465 points at 432.10 cents today. Prices closed nearthe session low today, hit a three-weeklow and scored a bearish "outside day&" down on the daily bar chart. The copperbulls and bears are on a level overall near-term technical playing field.Copper bulls' next upside price objective is pushing and closing prices abovesolid technical resistance at 455.00 cents. The next downside price objectivefor the bears is closing prices below solid technical support at 410.00 cents.First resistance is seen at 440.00 cents and then at today’s high of 445.05cents. First support is seen at 430.00 cents and then at 425.00 cents.Wyckoff's Market Rating: 5.0.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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