Gold, Silver See Corrective Bounces Ahead Of FOMC Statement

(Kitco News) - Gold pricesare moderately higher in early U.S. trading Tuesday, while silver is sportingsolid gains. The metals are seeing corrective rebounds from selling pressurethat drove the markets to multi-week lows on Tuesday. June Comex gold futureswere last up $4.10 an ounce at $1,311.00. July Comex silver was last up $0.303at $16.43 an ounce.

Animportant U.S. data point today is the just-released ADP national employmentreport for April, which showed a rise of 204,000. The number was forecast to beup 190,000 jobs. The gold market moved little after the release of this report.

However,the key U.S. markets event Wednesday will be the Federal Reserve's Open MarketCommittee (FOMC) meeting that began Tuesday morning ends Wednesday afternoonwith a statement. No change in U.S. interest rates is expected at this meeting.Focus will be on inflation prospects and what the FOMC members have to say onthat matter.

AU.S. high-level trade delegation travels to China Thursday to try to avert atrade war between the world's two largest economies.

OnFriday is the U.S. employment report from the Labor Department-arguably themost important U.S. data point of the month.

Theoutside markets today see the U.S. dollar index slightly lower on a correctivepullback after hitting a 4.5-month high on Tuesday. Meantime, Nymex crude oil prices are slightly up and trading around $67.50 a barrel.

OtherU.S. economic data due for release Wednesday includes the weekly MBA mortgageapplications survey, the ISM New York report on business, the globalmanufacturing PMI, and the weekly DOE liquid energy stocks report.

Technically,June gold bulls and bears are on a level overall near-term technical playingfield. Gold bulls' next upside near-term price breakout objective is to producea close above solid technical resistance at last week's high of $1,337.60.Bears' next near-term downside price breakout objective is pushing prices belowsolid technical support at $1,300.00. First resistance is seen at Tuesday'shigh of $1,317.40 and then at $1,325.00. First support is seen at $1,300.00 andthen at $1,290.00. Wyckoff's Market Rating: 5.0

Julysilver futures bears have the firm overall near-term technical advantage.Silver bulls' next upside price breakout objective is closing prices abovesolid technical resistance at $17.00 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at $16.00. Firstresistance is seen at this week's high of $16.58 and then at $16.75. Nextsupport is seen at the overnight low of $16.175 and then at this week's low of $16.07.Wyckoff's Market Rating: 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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