Gold, Silver Weaker; FOMC Conclusion Awaited

(Kitco News) - Gold andsilver pricesaremodestly lower in early U.S. trading Thursday. A rebound in the U.S. dollar index today, following selling pressure this week, is working against theprecious metals market bulls. December gold futures were last down $2.50 anounce at $1,226.30. December Comex silver was last down $0.044 at $14.525 anounce.

Focustoday is on the conclusion of the Federal Reserve’s Open Market Committee(FOMC) meeting that began Wednesday morning and ends with a statement Thursdayafternoon. No change in U.S. interest rates is expected. As always, traderswill scrutinize wording of the FOMC statement and Chairman Jay Powell’s remarksat his press conference, for clues on the future direction and timing of U.S.monetary policy.

Europeanstock markets were mixed overnight, while Asian shares were mostly firmer. U.S.stock indexes are pointed toward lower openings when the New York day sessionbegins, on a corrective pullback from Wednesday’s solid gains.

Riskappetite in the world marketplace is mostly upbeat following the U.S. mid-termelections that produced a divided Congress.

Inovernight news, upbeat economic data out of China defied expectations that itstrade war with the U.S. is crimping its economy. China’s exports in Octoberrose by 15.6%, year-on-year. That handily beat expectations of an 11% increase.Imports in October were up 21.4%, year-on-year. Imports from the U.S. dropped1.8%. This data suggests China could be in no hurry to settle its trade disputewith the U.S. However, as has been the case for years, some do question theveracity of China’s economic numbers.

Meantime,economic data out of the European Union showed the Euro zone’s 2018 economicgrowth is seen at 2.1%, with 2019 GDP seen at 1.9% and then at 1.7% in 2020.The report estimates 2018 and 2019 inflation for the Euro zone at an annualrate of 1.8%.

Theother key “outside market” today finds Nymex crude oil prices slightly higherand trading just below $62.00 a barrel. Nymex oil prices this week hit aseven-month low. The down-trending crude oil market is a bearish element forthe raw commodity sector, including the metals markets.

OtherU.S. economic data due for release Thursday includes the weekly jobless claimsreport and the monthly chain store sales index.

Technically,gold bulls and bears are on a level overall near-term technical playing field.Bulls’ next upside price objective is to produce a close in December futuresabove solid resistance at the October high of $1,246.00. Bears' next near-termdownside price breakout objective is pushing prices below solid technicalsupport at $1,200.00. First resistance is seen at last week’s high of $1,239.30and then at $1,246.00. First support is seen at the overnight low of $1,222.20and then at last week’s low of $1,213.40. Wyckoff's Market Rating: 5.0

Decembersilver futures bears have the overall near-term technical advantage. However,recent price action suggests a market bottom is in place. Silver bulls' nextupside price breakout objective is closing prices above solid technicalresistance at $15.00 an ounce. The next downside price breakout objective forthe bears is closing prices below solid support at the September low of $13.965.First resistance is seen at this week’s high of $14.775 and then at the Octoberhigh of $14.95. Next support is seen at the overnight low of $14.43 and then atlast week’s low of $14.24. 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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