Gold price pokes to another record high as FOMC on deck

(Kitco News, Mon. Sep. 16th, 2024)  – Gold prices are just slightly lower after edging to another record high of $2,617.40, basis Comex December futures, overnight. Silver prices are modestly up in early U.S. trading. It’s a big U.S. data week that is seeing some position evening in the precious metals to start the week. December gold was last down $2.10 at $2,608.60 and December silver was up $0.161 at $31.235.

The U.S. data point of the week is the Federal Reserve’s Open Market Committee meeting (FOMC) that begins Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chairman Jerome Powell. The marketplace thinking has shifted just recently, now slightly favoring a 0.5% rate cut, after earlier reckoning a 0.25% rate cut was most likely. Reads a Wall Street Journal headline today: “Stock markets now need a bigger Fed rate cut; anything less would hurt.”

In overnight/weekend news, China got some more downbeat economic data, which will “add to calls for more government stimulus and see markets revising growth expectations lower,” said broker SP Angel in a morning email dispatch. “ Incoming data also points to challenges in reaching the official target of around 5% GDP growth rate in 2024.” Slowdowns were reported over both industrial production and consumer spending. “    The property sector remains a drag on economic activity with investment, sales and prices continuing to fall,“ said SP Angel. Industrial production and retail sales in August were also weaker than expected for the world’s second-largest economy.

The weaker China data just released may be giving the precious metals markets bulls some pause Monday, from a consumer and commercial demand perspective coming from the world’s second-largest economy.

Asian and European stock indexes were mixed overnight. Many Asian markets were closed for public holidays. U.S. stock indexes are pointed to mixed openings when the New York day session begins.

The key outside markets today see the U.S. dollar index solidly lower. Nymex crude oil prices are higher and trading around $69.25 a barrel. The benchmark 10-year U.S. Treasury note yield is on the decline and is presently fetching 3.644%.

U.S. economic data due out Monday is light and includes the Empire State manufacturing survey.

Technically, December gold bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $2,700.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,500.00. First resistance is seen at the overnight record high of $2,617.40 and then at $2,625.00. First support is seen at Friday’s low of $2,585.00 and then at $2,570.40.t

December silver futures bulls have the overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the July high of $32.46. The next downside price objective for the bears is closing prices below solid support at $29.00. First resistance is seen at the overnight high of $31.46 and then at $32.00. Next support is seen at $30.67 and then at $30.00.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com