Gold price firmer as marketplace awaits FOMC meeting

Asian and European stock markets were mixed in overnight trading. U.S. stock index futures are set to open mixed to higher when the New York day session begins.

The U.S. data point of the week will be the Federal Open Market Committee (FOMC) monetary policy meeting that begins Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chairman Jerome Powell. No change in policy is expected, but as always the marketplace will parse the statement and Powell’s presser for clues on the future path and timing of monetary policy.

In overnight news, economic data out of China was a mixed bag. January-February industrial output rose 7%, year-over-year, which is the fastest growth in two years. Retail sales in the same period were up 5.5%, down from 7.4% growth in the December period.

The Eurozone February consumer price index was reported up 2.6%, year-on-year, which was right in line with market expectations.

The key outside markets today see the U.S. dollar index slightly lower. Nymex crude oil prices are firmer and trading around $81.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 4.31%.

U.S. economic reports due out Monday is light and includes the NAHB housing market index.

Technically, the gold futures bulls have the solid overall near-term technical advantage. A steep four-week-old uptrend is in place on the daily bar chart. A bullish pennant pattern has also formed on the daily bar chart. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at $2,250.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,100.00. First resistance is seen at Friday’s high of $2,176.90 and then at $2,185.00. First support is seen at the overnight low of $2,149.20 and then at $2,140.00.

The silver bulls have the firm overall near-term technical advantage. Prices hit a three-month high Friday. Silver bulls’ next upside price objective is closing May futures prices above solid technical resistance at the December high of $26.575. The next downside price objective for the bears is closing prices below solid support at $24.00. First resistance is seen at last week’s high of $25.66 and then at $26.00. Next support is seen at $25.00 and then at $24.50.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com