Gold, silver see some price pressure as FOMC meeting on deck

(Kitco News, Tues. Nov. 2nd, 2021) – Gold and silver prices are modestly down in early U.S. dealings Tuesday, as the markets are pausing ahead of the U.S. central bank’s policy-setting meeting. December gold was last down $2.80 at $1,793.10 and December Comex silver was last down $0.153 at $23.925 an ounce.

It’s a busy U.S. data week, highlighted by the Federal Reserve’s Open Market Committee (FOMC) meeting that begins Tuesday morning and ends Wednesday afternoon with a statement. Most Fed watchers believe the central bank will announce the timing of tapering of its monthly bond purchases after this meeting. Other major central banks of the world are also on paths of tightening their monetary policies amid concerns of rising inflation.

Global stock markets were mostly weaker in overnight trading. The U.S. stock indexes are pointed to near-steady openings when the New York day session begins. The U.S. indexes are pausing Tuesday after hitting record highs on Monday. Solid U.S. corporate earnings reports the past few weeks have driven the U.S. stock indexes to new highs.

On Friday the U.S. employment situation report for October is due. The key non-farm payrolls component of that report is expected to rise 450,000 compared to a rise of 194,000 in the September report.

The key outside markets today see the U.S. dollar index slightly higher. Nymex crude oil prices are near steady and trading around $84.00 a barrel. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.553%.

U.S. economic data due for release Tuesday includes the Johnson Redbook and chain store index weekly retail reports, the IBD/TIPP economic optimism index, and the global manufacturing PMI.

Technically, December gold futures bulls have the overall near-term technical advantage as prices are in a four-week-old uptrend on the daily chart. However, the bulls need to show fresh power soon to keep the price uptrend alive. Bulls’ next upside price objective is to produce a close above solid resistance at the September high of $1,836.90. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,750.00. First resistance is seen at $1,800.00 and then at the October high of $1,815.50. First support is seen at Monday’s low of $1.780.20 and then at last week’s low of $1,772.40.

The silver bulls have the slight overall near-term technical advantage. A four-week-old uptrend on the daily bar chart has stalled out. Silver bulls’ next upside price objective is closing December futures prices above solid technical resistance at $25.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at Monday’s high of $24.175 and then at $24.50. Next support is seen at last week’s low of $23.705 and then at $23.50.

Posted by :

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com