(Kitco News) – Gold prices are modestly down but up from daily lows in midday U.S. trading Monday. Silver prices are steady to slightly up. A higher U.S. dollar index and rising bond yields are limiting buying interest in the precious metals to start the trading week. As has been the case for quite some time, traders and investors appear to be favoring the perceived safe-haven greenback and U.S. Treasuries over the precious metals. October gold was last down $3.80 at $1,669.00 and December silver was up $0.009 at $19.39.
Marketplace focus is now on this week’s FOMC meeting that begins Tuesday and ends Wednesday afternoon. The FOMC is generally expected to raise the key U.S. Fed funds rate by 0.75% in the Fed’s effort to tamp down problematic price inflation. However, there is scattered talk the Fed could do a full 1.0 percent rate hike. One investment bank’s research team said the Fed raising 100 basis points is possible but not likely. The Bank of England also holds its monetary policy meeting later this week.
Global stock markets were mostly lower overnight. U.S. stock indexes lower at midday and at or near two-month lows. Traders and investors remain jittery to start the trading week, amid fears of a U.S. and/or global recession.
The key outside markets today see Nymex crude oil prices firmer and trading around $85.50 a barrel. The U.S. dollar index is higher. The yield on the 10-year U.S. Treasury note is fetching 3.48%. The 2-year U.S. Treasury note yield climbed to 3.927%. The inverted 2-year/10-year yield curve is one clue of impending U.S. economic recession.
Technically, October gold futures prices hit a nearly 2.5-year low last Friday. The gold futures bears have the solid overall near-term technical advantage and gained more power today. Bulls’ next upside price objective is to produce a close above solid resistance at $1,700.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,600.00. First resistance is seen at today’s high of $1,678.00 and then at $1,686.30. First support is seen at last week’s low of $1,651.90 and then at $1,635.00. Wyckoff’s Market Rating: 1.0.
December silver futures bears have the firm overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $21.00. The next downside price objective for the bears is closing prices below solid support at $18.00. First resistance is seen at today’s high of $19.69 and then at $20.00. Next support is seen at $19.00 and then at last week’s low of $18.77. Wyckoff’s Market Rating: 2.5.
December N.Y. copper closed down 100 points at 350.55 cents today. Prices closed nearer the session low today. The copper bears have the overall near-term technical advantage. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the August high of 378.35 cents. The next downside price objective for the bears is closing prices below solid technical support at the July low of 315.55 cents. First resistance is seen at today’s high of 355.80 cents and then at 360.00 cents. First support is seen at last week’s low of the September low of 354.40 cents and then at 350.00 cents. Wyckoff’s Market Rating: 3.0.
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