Gold Firms On Safe-Haven Buying; No Reaction To FOMC Minutes

(Kitco News) - Gold prices aremoderately higher in early-afternoon U.S. trading Wednesday and are back above$1,200.00, on some safe-haven demand as U.S. President Trump may be in somelegal and political trouble. December gold futures were last up $4.40 an ounceat $1,204.50. September Comex silver was last down $0.011 at $14.76 an ounce.

Thejust-released minutes of the last Federal Open Market Committee (FOMC) meetingon July 31-Aug.1 showed Fed officials are likely to raise U.S. interest ratesnext month due to recent solid economic growth and expectations for more of thesame. However, the FOMC members said lingering trade disputes between the U.S.and its major trading partners could have a negative impact on economic growth.The members also discussed dropping language from their statements that termsU.S. monetary policy “accommodative.”

Wednesdaysaw some trader and investor anxiety as Trump is in some hot water. Two of hisclose associates are likely going to jail. This has added a bit of uncertaintyto the world marketplace at mid-week. There is talk Trump could pardon thoseassociates, or that he could be impeached. And the mid-term congressionalelections are right around the corner.

Anotherhighlight of the trading week will be the annual meeting of world centralbankers in Jackson Hole, Wyoming, that begins on Friday. Past years’ meetingshave produced important proclamations from world central bankers. Fed ChairmanPowell is slated to speak at the symposium.

Inovernight news, the German government sold a 10-year bund at an average yieldof 0.33%, which is a record low. That yield compares to U.S. 10-year Treasuryyields that are around 2.83%.

Thekey outside markets today find the U.S. dollar index slightly lower again asthe bulls are fading this week. Meantime, Nymex crude oil prices are solidlyhigher and trading above $68.00 a barrel.

Technically,gold bears still have the overall near-term technical advantage amid a pricedowntrend on the daily bar chart. However, the bears appear to be exhausted tosuggest a market bottom is in place. Gold bulls' next upside near-term pricebreakout objective is to produce a close in December futures above solidresistance at $1,226.00. Bears' next near-term downside price breakoutobjective is pushing prices below solid technical support at last week’s low of$1,167.10. First resistance is seen at $1,212.50 and then at $1,221.40. Firstsupport is seen at today’s low of $1,199.20 and then at this week’s low of$1,189.60. Wyckoff's Market Rating: 2.5

Septembersilver futures bears still have the overall near-term technical advantage.Silver bulls' next upside price breakout objective is closing prices abovesolid technical resistance at $15.50 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at $14.00. Firstresistance is seen at today’s high of $14.875 and then at $15.00. Next supportis seen at this week’s low of $14.625 and then at $14.50. Wyckoff's MarketRating: 2.5.

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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