(Kitco News) – Gold and silver futures prices are lower in early U.S. trading Wednesday, on some profit-taking following gains scored earlier this week and on an uptick in risk appetite today. Position evening is also featured just ahead of the conclusion of the Federal Reserve’s FOMC meeting this afternoon. June gold was last down $28.90 at $3,393.90. July silver prices were last down $0.256 at $33.125.
Asian and European stock markets were mixed in overnight trading. U.S. stock indexes are pointed to higher openings today in New York. Risk appetite has improved at mid-week as reports say U.S. and Chinese officials are set to meet in Switzerland late this week to discuss trade. U.S. Treasury Secretary Scott Bessent will lead the U.S. delegation.
The Federal Reserve’s FOMC interest rate decision comes on Wednesday afternoon. The marketplace consensus is that the FOMC will not lower U.S. interest rates. As always, the FOMC statement and press conference from Fed Chair Jerome Powell will be very closely scrutinized for clues on the trajectory of Fed monetary policy in the weeks and months ahead. Wording on inflationary pressures will also be very important to the marketplace, as will the central bank’s latest take on trade tariffs and the global trade war.
In other overnight news, China’s central bank said today it will lower its interest rates and inject more liquidity into its financial system in an effort to boost the Chinese economy. The moves by the People’s Bank of China are not seen as aggressive.
Traders and investors are keeping an eye on developments in India and Pakistan. Reports say Pakistan has vowed to retaliate after India carried air strikes with 26 people reported killed. India said it carried out air strikes on nine terrorist camps in Pakistan and the disputed region of Kashmir. India said it targeted the planners of the Pahalgam attack that claimed 25 lives in late April as a result of a terrorist attack. Said broker SP Angel: “We would not be surprised if the attacks were pre-cleared with the Pakistan government. It might be difficult for the Pakistan government to attack and contain certain terrorist groups within its own territory.”
The key outside markets today see the U.S. dollar index firmer. Nymex crude oil futures prices are slightly higher and trading around $59.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.312%.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, consumer credit and the weekly DOE liquid energy stocks report.
Technically, June gold futures bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the contract/record high of $3,509.90. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at last week’s low of $3,209.40. First resistance is seen at the overnight high of $3,448.20 and then at $3,475.00. First support is seen at the overnight low of $3,367.00 and then at Tuesday’s low of $3,332.10. Wyckoff’s Market Rating: 7.5.
July silver futures bulls have the overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $34.015. The next downside price objective for the bears is closing prices below solid support at $31.00. First resistance is seen at the overnight high of $33.48 and then at $34.015. Next support is seen at the overnight low of $32.93 and then at Tuesday’s low of $32.625. Wyckoff’s Market Rating: 6.0.
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Jim Wyckoff has spent over 25 years involved with the stock, financial and commodity markets. He was a financial journalist with the FWN newswire service for many years, including stints as a reporter on the rough-and-tumble commodity futures trading floors in Chicago and New York. As a journalist, he has covered every futures market traded in the U.S., at one time or another.
Jim is the proprietor of the “Jim Wyckoff on the Markets” analytical, educational and trading advisory service. Jim also worked as a technical analyst for Dow Jones Newswires and as the senior market analyst with TraderPlanet.com. Jim is also a consultant with the highly respected “Pro Farmer” agricultural advisory service. Jim was also the head equities analyst at CapitalistEdge.com. He received his degree from Iowa State University in Ames, Iowa, where he studied journalism and economics.
Follow Jim daily on Kitco.com as he provides both AM and PM roundups and a daily Technical Special.
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