Gold Modestly Lower in Early Trading, Waiting On Wednesday Fed Comments

( Kitco ) – Wednesday May 1st, 2019  – Gold and silver prices modestly down in early-morning U.S. trading Wednesday, in the immediate aftermath of a much-stronger-than-expected reading on the U.S. economy. However, both metals had been under mild pressure in overnight dealings. June gold futures were last down $3.00 an ounce at $1,282.60. July Comex silver was last down $0.114 at $14.87 an ounce.

The just-released ADP national employment report for April showed a rise of 275,000 jobs, which is way above the forecast for a rise of 177,000. This report is a precursor to the more important employment situation report from the Labor Department on Friday morning, and suggests Friday’s jobs report could be stronger than many had expected. A strong employment report on Friday could alter the thinking of the Federal Reserve, regarding its present monetary policy than leans dovish.

Trader and investor focus will quickly turn to this afternoon’s U.S. economic data highlight of the week: the conclusion of the Federal Open Market Committee (FOMC) meeting that began Tuesday morning. The FOMC statement and a press conference from Fed Chairman Jerome Powell this afternoon are expected to see no changes in U.S. monetary policy. However, as usual, the statement and Powell’s comments will be parsed by the marketplace for clues on the timing of future monetary policy changes, and on inflation prospects.

Those Asian and European stock markets that were open overnight were mixed in very quiet trading. Most overseas markets in European and Asia were closed for the May Day holiday today. U.S. stock indexes are pointed toward firmer openings when the New York day session begins.

The key “outside markets” today see the U.S. dollar index down again on more profit taking after hitting a two-year high last week. Meantime, Nymex crude oil prices are lower and trading around $63.50 a barrel.

Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the U.S. manufacturing purchasing managers index (PMI), construction spending, the ISM manufacturing report on business, and the weekly DOE liquid energy stocks report.

Posted by :

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com