Gold, silver see some price pressure as FOMC meeting on deck

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - Gold and silver prices are modestly down in early U.S. dealings Tuesday, as the marketsare pausing ahead of the U.S. central bank's policy-setting meeting. Decembergold was last down $2.80 at $1,793.10 and December Comexsilver was last down $0.153at $23.925 an ounce.

It'sa busy U.S. data week, highlighted by the Federal Reserve's Open Market Committee(FOMC) meeting that begins Tuesday morning and ends Wednesday afternoon with astatement. Most Fed watchers believe the central bank will announce the timingof tapering of its monthly bond purchases after this meeting. Other majorcentral banks of the world are also on paths of tightening their monetarypolicies amid concerns of rising inflation.

Globalstock markets were mostly weaker in overnight trading. The U.S. stock indexesare pointed to near-steady openings when the New York day session begins. TheU.S. indexes are pausing Tuesday after hitting record highs on Monday. Solid U.S.corporate earnings reports the past few weeks have driven the U.S. stockindexes to new highs.

OnFriday the U.S. employment situation report for October is due. The keynon-farm payrolls component of that report is expected to rise 450,000 comparedto a rise of 194,000 in the September report.

Thekey outside markets today see the U.S. dollar index slightly higher. Nymex crudeoil prices are near steady and trading around $84.00 a barrel. Meantime, the10-year U.S. Treasury note yield is presently fetching 1.553%.

U.S.economic data due for release Tuesday includes the Johnson Redbook and chainstore index weekly retail reports, the IBD/TIPP economic optimism index, and theglobal manufacturing PMI.

Technically,December gold futures bulls have the overall near-term technical advantage asprices are in a four-week-old uptrend on the daily chart. However, the bullsneed to show fresh power soon to keep the price uptrend alive. Bulls' next upsideprice objective is to produce a close above solid resistance at the September highof $1,836.90. Bears' next near-term downside price objective is pushing futuresprices below solid technical support at $1,750.00. First resistance is seen at $1,800.00and then at the October high of $1,815.50. First support is seen at Monday'slow of $1.780.20 and then at last week's low of $1,772.40. Wyckoff's Market Rating:6.0.

The silver bulls have the slight overall near-termtechnical advantage. A four-week-old uptrend on the daily bar chart has stalledout. Silver bulls' next upside price objective is closing December futures pricesabove solid technical resistance at $25.00 an ounce. The next downside price objectivefor the bears is closing prices below solid support at $23.00. First resistanceis seen at Monday's high of $24.175 and then at $24.50. Next support is seen atlast week's low of $23.705 and then at $23.50. Wyckoff's Market Rating: 5.5.

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.

Monetary-driven precious metals outperform major base metals

Gold stocks hit by plunging equities markets

Gold stocks down as metal and equities momentum fades

Another Kazatomprom guidance announcement shakes uranium price

Major monetary drivers still supporting gold