Gold Weaker, No Reaction To As-Expected FOMC Statement

(Kitco News) - Goldandsilver prices are weaker in early-afternoon U.S. trading Wednesday. The metalsand other markets showed little reaction to the just-released FOCM statementthat showed no change in U.S. monetary policy. December gold futures were lastdown $4.30 an ounce at $1,229.40. September Comex silver was last down $0.089at $15.47 an ounce.

TheFOMC meeting of the Federal Reserve that began Tuesday morning ended thisafternoon with a statement saw no changes in interest rates or Fed policy andnone were expected at this meeting. The statement guided the marketplace towardmore gradual rate increases down the road, which is exactly what most expectedto hear from the Fed. There was also no wording in the statement that caughttraders off-guard.

TheBank of England meets Thursday for its regular monetary policy gathering. Nochanges in policy are expected from the BOE.

Thismorning’s ADP national employment report for July showed a rise of 219,000. Thenumber is higher than the expected rise of 185,000. This number comes ahead ofthe more important U.S. non-farm payroll number on Friday, which is forecast tocome in at up 190,000 in July. The metals markets reacted little to the ADPnews.

Thekey “outside markets” today find Nymex crude oil prices lower and trading justaround $67.50 a barrel. The U.S. dollar index is slightly higher today. Thesetwo markets are in a bearish daily posture for the precious metals markets.

(NOTE:Follow me on Twitter: @jimwyckoff)

Technically,the gold bears have the solid overall near-term technical advantage. There arestill no strong, early clues to suggest a market bottom is close at hand. A 3.5-month-old downtrend is in place on thedaily bar chart. Gold bulls' next upside near-term price breakout objective isto produce a close 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 this week’s high of$1,237.80 and then at last week’s high of $1,244.70. First support is seen at$1,225.00 and then at this week’s low of $1,221.00. Wyckoff's Market Rating:2.0

Thesilver bears have the solid overall near-term technical advantage. There arestill no early clues to suggest a market bottom is close at hand. Silver bulls'next upside price breakout objective is closing prices above solid technicalresistance at $16.00 an ounce. The next downside price breakout objective forthe bears is closing prices below solid support at $15.00. First resistance isseen at last week’s high of $15.70 and then at $15.90. Next support is seen atthis week’s low of $15.38 and then at the July low of $15.185. Wyckoff's MarketRating: 2.5.

SeptemberN.Y. copper closed down 880 points at 274.30 cents today. Prices closed nearerthe session low. The copper bears have the solid overall near-term technicaladvantage. Copper bulls' next upside price objective is pushing and closingprices above solid technical resistance at 300.00 cents. The next downsideprice objective for the bears is closing prices below solid technical supportat the July low of 267.35 cents. First resistance is seen at 280.00 cents andthen at this week’s high of 282.85 cents. First support is seen at today’s lowof 272.60 cents and then at 270.00 cents. Wyckoff's Market Rating: 1.5.

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