Gold price a bit weaker ahead of FOMC results, Powell preser

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(Kitco News) - Gold pricesare modestly down in early U.S. dealings Wednesday, with silver futures pricesslightly up. The markets are pausing ahead of the conclusion this afternoon ofthis week's FOMC meeting, which includes a press conference from Fed Chairman JeromePowell. Look for potentially higher market volatility in the immediateaftermath of the release of the FOMC statement at 2:00 PM EDT. December goldwas last down $3.50 at $1,785.90 and December Comex silver was last up $0.128 at$23.64 an ounce.

Thejust-released 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 pointed to mixed openings when the New York day session begins. The U.S.indexes hit record highs on Tuesday.

TheFederal Reserve's Open Market Committee (FOMC) meeting that began Tuesdaymorning ends Wednesday afternoon with a statement and press conference from Powell.Most Fed watchers believe the U.S. central bank will announce the timing of taperingof its monthly bond purchases. An immediate reduction of $15 billion per monthof bond purchases is being bandied about the marketplace. No changes in U.S.interest rates are expected, but market watchers will parse the Fed's commentsfor clues on the timing of future rate increases.

Reportssay more provinces in China are fighting coronavirus outbreaks than at any timesince Covid-19 emerged in Wuhan province in 2019. China officials are warningthat new Covid lockdowns in China are likely to dent economic growth.

Thekey outside markets today see the U.S. dollar index slightly lower. Nymex crudeoil prices are sharply lower and trading around $82.00 a barrel. Meantime, the10-year U.S. Treasury note yield is presently fetching 1.553%.

It'sa busy day of U.S. economic data released Wednesday, including the weekly MBAmortgage applications survey, the ADP national employment report, the Treasuryquarterly refunding announcement, the U.S. services PMI, the ISM report onbusiness services, manufacturers' shipments and inventories and the weekly DOEliquid energy stocks report.

Technically,December gold futures bulls have the slight overall near-term technical advantage.Prices are in a four-week-old uptrend on the daily chart but just barely. Thebulls need to show fresh power soon to keep the price uptrend alive. Bulls' nextupside price objective is to produce a close above solid resistance at the Septemberhigh of $1,836.90. Bears' next near-term downside price objective is pushing futuresprices below solid technical support at $1,750.00. First resistance is seen atthis week's high of $1,797.80 and then at $1,800.00. First support is seen attoday's low of $1.778.60 and then at last week's low of $1,772.40. Wyckoff'sMarket Rating: 5.5

The silver bulls have lost their the slight overall near-termtechnical advantage. A four-week-old uptrend on the daily bar chart has beennegated. Silver bulls' next upside price objective is closing December futures pricesabove solid technical resistance at $25.00 an ounce. The next downside price objectivefor the bears is closing prices below solid support at $22.50. First resistanceis seen at $24.00 and then at this week's high of $24.175. Next support is seenat today's low of $23.42 and then at $23.00. 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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