Gold Near Steady, Silver Up As FOMC Decision On Deck

(Kitco News) - Goldpricesare just slightly higher in early-afternnon U.S. trading Tuesday, while silverprices are posting decent gains and hit a three-week high. Gold and many othermarkets are in a holding pattern ahead of the Federal Reserve's Open MarketCommittee (FOMC) meeting decision Wednesday afternoon. A slightly lower U.S. dollar index today prompted some buying interest in the metals. December gold futures were last up $0.80 an ounce at $1,205.30. December Comex silver waslast up $0.154 at $14.49 an ounce.

Thetwo-day FOMC meeting that began Tuesday morning is expected to see the Fed slightlyraise U.S. interest rates. Fed Chairman Jerome Powell will also hold a pressconference after the meeting. As usual, the marketplace will parse the Fed'swording for clues on the pace of future Fed rate hikes and the Fed's inflationexpectations.

Worldstock markets were mixed today. There are lingering worries the U.S. andChina's trade war will escalate to the point of damaging world commerce.Meanwhile, President Trump is negotiating bi-lateral trade deals with otherAsian countries and has signed an agreement with South Korea.

PresidentTrump gave a very nationalistic speech to the United Nations today, includingcriticizing Iran and China, but the markets did not react much to the speech.

Theother key outside market today finds November Nymex crude oil prices slightlyhigher and trading just above $72.00 a barrel. Supply worries have boosted oilrecently. U.S. sanctions against Iran begin in early November, which willlikely take much of that country's oil off the world market.

Technically,the gold bears still have the overall near-term technical advantage. However,prices have been trading sideways for the past month, which begins to suggest amarket bottom is in place. Gold bulls' next upside near-term price breakoutobjective is to produce a close above solid technical resistance at $1,220.70.Bears' next near-term downside price breakout objective is pushing prices belowsolid technical support at the August low of $1,167.10. First resistance isseen at $1,210.00 and then at $1,215.80. First support is seen at Monday's lowof $1,198.60 and then at $1,192.70. Wyckoff's Market Rating: 3.0

Thesilver bears still have the firm overall near-term technical advantage. Silverbulls' next upside price breakout objective is closing December futures pricesabove solid technical resistance at $15.07 an ounce. The next downside pricebreakout objective for the bears is closing prices below solid support at$13.50. First resistance is seen at today's high of $14.595 and then at $14.75.Next support is seen at this week's low of $14.22 and then at last week's lowof $14.065. Wyckoff's Market Rating: 2.5.

DecemberN.Y. copper closed down 155 points at 282.00 cents today. Prices closed nearmid-range today and saw more profit taking after hitting a seven-week high lastFriday. The copper bears have the overall near-term technical advantage, butrecent good gains suggest a market bottom is in place. Copper bulls' nextupside price objective is pushing and closing prices above solid technicalresistance at the 295.00 cents. The next downside price objective for the bearsis closing prices below solid technical support at the August low of 257.45cents. First resistance is seen at today's high of 284.80 cents and then atlast week's high of 287.10 cents. First support is seen at today's low of278.90 cents and then at 275.00 cents. Wyckoff's Market Rating: 4.0.

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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