Gold, silver pull back ahead of FOMC conclusion Wed. PM
(Kitco News) - Gold and silver prices aredown in midday U.S. trading Tuesday, with silver sharply lower. A higher U.S.dollar index and lower crude oil prices today are negative outside markets forthe metals. Some position-evening in the futures markets ahead of Wednesdayafternoon's conclusion of the Fed's FOMC meeting is also featured. Somespeculative shorts may also have stepped in on the sell side today, reckoningthe FOMC statement will favor the metals market bears. December gold was lastdown $6.80 at $1,789.10 and December Comex silver was last down $0.628 at $23.445an ounce.
It'sa busy U.S. data week, highlighted by the Federal Reserve's Open MarketCommittee (FOMC) meeting that began Tuesday morning and ends Wednesdayafternoon with a statement. Most Fed watchers believe the central bank willannounce the timing of tapering of its monthly bond purchases after thismeeting. Some may believe a taper announcement would put selling pressure intothe gold and silver markets. However, others point to the historical aspects ofhigher interest rates and rising price inflation being overall bullish for hardassets, including the metals. Those who think they know how the metals willreact to the likely Fed-tapering announcement may be sorely disappointed.
Globalstock markets were mostly weaker in overnight trading. The U.S. stock indexesare higher and at record highs at midday. Solid U.S. corporate earnings reportsthe past few weeks have driven the U.S. stock indexes to new highs.
OnFriday the U.S. employment situation report for October is due. The key non-farmpayrolls component of that report is expected to rise 450,000 compared to arise of 194,000 in the September report.
Thekey outside markets today see the U.S. dollar index higher. Nymex crude oilprices are lower and trading around $84.00 a barrel. Meantime, the 10-year U.S.Treasury note yield is presently fetching 1.553%.
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2924175530478188){kind=small}
Technically,December gold futures bulls have the overall near-term technical advantage amida four-week-old price uptrend still in place on the daily bar chart. Bulls'next upside price objective is to produce a close above solid resistance at theSeptember high of $1,836.90. Bears' next near-term downside price objective ispushing futures prices below solid technical support at $1,750.00. Firstresistance is seen at $1,800.00 and then at the October high of $1,815.50.First support is seen at this week's low of $1,780.20 and then at last week'slow of $1,772.40. Wyckoff's Market Rating: 6.0
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
December silver futures prices hit a two-week lowtoday. The silver bulls have lost their overall near-term technical advantage.A four-week-old uptrend on the daily chart has been negated. Silver bulls' nextupside price objective is closing prices above solid technical resistance at$25.00 an ounce. The next downside price objective for the bears is closingprices below solid support at $22.50. First resistance is seen at $24.00 andthen at this week's high of $24.175. Next support is seen at today's low of$23.43 and then at $23.00. Wyckoff's Market Rating: 5.0.
DecemberN.Y. copper closed down 375 points at 435.60 cents today. Prices closed nearerthe session low today. The copper bullsand bears are on a level overall near-term technical playing field. Copperbulls' next upside price objective is pushing and closing prices above solidtechnical resistance at 460.00 cents. The next downside price objective for thebears is closing prices below solid technical support at 420.00 cents. Firstresistance is seen at today's high of 443.30 cents and then at 447.50 cents.First support is seen at this week's low of 432.85 cents and then at 430.00cents. Wyckoff's Market Rating: 5.0.
By Jim WyckoffFor Kitco News
Follow @jimwyckoff
jwyckoff@kitco.comwww.kitco.com