By Jim Wyckoff, Kitco News
(Kitco News) - Gold prices are slightly higher and silver moderately up in early U.S. trading Wednesday. The gold market is pausing just ahead of the U.S. data point of the week: this afternoon’s conclusion of the Federal Reserve’s Open Market Committee meeting. The FOMC is widely expected to hold U.S. interest rates steady. The FOMC statement and press conference from Fed Chair Jerome Powell will be closely parsed by the marketplace. The marketplace will also closely scrutinize any comments from President Trump immediately following the Fed meeting. February gold was last up $1.60 at $2,769.00. March silver was up $0.318 at $31.20.
The Bank of Canada today is set to cut its main rate by a quarter point. Sweden’s central bank also lowered its main rate by 0.25%. Traders also see the ECB cutting its rate at its meeting Thursday.
Asian and European shares were mixed overnight. Some Asian markets were closed Wednesday for a holiday. U.S. stock indexes are set to open mixed when the New York day session begins. Reports say Microsoft and OpenAI are investigating whether a group linked to China's DeepSeek illicitly obtained U.S. OpenAI's data. The DeepSeek news over the weekend that it developed an AI platform that meets or beats the U.S. models, at a fraction of the cost, rattled the U.S. stock market.
The key outside markets today see the U.S. dollar index higher. Nymex crude oil futures prices are weaker and trading around $73.35 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.526%.
Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the advance economic indicators report, and the weekly DOE liquid energy stocks report.
Technically, February gold futures bulls have the firm overall near-term technical advantage. Prices are trending up on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $2,826.30. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,700.00. First resistance is seen at this week’s high of $2,778.10 and then at $2,800.00. First support is seen at $2,750.00 and then at this week’s low of $2,732.00. Wyckoff's Market Rating: 7.0.
March silver futures bulls and bears are on a level overall near-term technical playing field. Silver bulls' next upside price objective is closing prices above solid technical resistance at $32.00. The next downside price objective for the bears is closing prices below solid support at the December low of $29.145. First resistance is seen at $31.50 and then at $31.71. Next support is seen at the overnight low of $30.755 and then at $30.50. Wyckoff's Market Rating: 5.0.
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