Gold Prices Moderately Down; No Reaction To FOMC Minutes

(Kitco News) - Gold prices aremoderately lower in early-afternoon U.S. trading Wednesday, on a normalcorrective pullback from recent solid gains that saw prices hit a 10-week highearlier this week. A big rebound in the U.S. stock market on Tuesday is alsodenting any safe-haven demand for gold and silver markets today. A rally in theU.S. dollar index today also worked against the precious metals market bulls.December gold futures were last down $4.40 an ounce at $1,226.60. DecemberComex silver was last down $0.046 at $14.655 an ounce.

TheU.S. economic highlight at mid-week was this afternoon’s release of the minutesfrom the Federal Reserve’s FOMC meeting that was held in late-September. Metalsmarkets saw little to no reaction to the minutes.
TheFOMC minutes confirmed the U.S. economy is on a strong growth path, which FOMCmembers said likely warrants further, gradual increases in interest rates. Theminutes said the Fed may, for a while, move interest rates into a “restrictive”mode. However, the Fed wants to keep U.S. economic growth on an even keel. Onthe inflation front, the minutes saw a slight upward revision in inflationarypressures. Some FOMC members saw acceleration in labor costs, but still onlymodestly. Some on the committee also said a stronger U.S. dollar could crimpeconomic growth and produce higher inflation. The recent U.S. hurricanes willonly impact the U.S. economy in a modestly negative fashion, the minutes said.

Therift between the U.S. and Saudi Arabia regarding a missing Saudi journalist whomany think was killed by the Saudi Kingdom remains near the front burner of themarketplace. The U.S. Secretary of State was in Saudi Arabia talking to theking and now is in Turkey to see its president. According to news reports, theSaudi king could be caught up in a cover-up of the reporter’s murder. PresidentTrump said there would be “severe punishment” of the Saudi Kingdom if it isdetermined it was complicit in the death of the journalist. There is a lot at stake for both sides.

Technically,the gold bulls still have the overall near-term technical advantage. Goldbulls' next upside near-term price breakout objective is to produce a close inDecember futures above solid technical resistance at $1,250.00. Bears' nextnear-term downside price breakout objective is pushing prices below solidtechnical support at $1,200.00. First resistance is seen at today’s high of$1,232.90 and then at this week’s high of $1,236.90. First support is seen atthis week’s low of $1,220.40 and then at $1,212.00. Wyckoff's Market Rating:6.0

Thesilver bears still have the overall near-term technical advantage. Silver bulls'next upside price breakout objective is closing prices December futures abovesolid technical resistance at $15.00 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at the Septemberlow of $13.965. First resistance is seen at this week’s high of $13.88 and thenat the October high of $13.95. Next support is seen at $14.50 and then at theOctober low of $14.255. Wyckoff's Market Rating: 3.5.

DecemberN.Y. copper closed down 35 points at 277.60 cents today. Prices closed nearmid-range today. The copper bears have the overall near-term technicaladvantage. Copper bulls' next upside price objective is pushing and closingprices above solid technical resistance at the 290.00 cents. The next downsideprice objective for the bears is closing prices below solid technical supportat the August low of 257.45 cents. First resistance is seen at today’s high of280.45 cents and then at this week’s high of 283.90 cents. First support isseen at today’s low of 275.40 cents and then at 272.50 cents. Wyckoff's MarketRating: 3.0.

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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