Reported by Kitco news, Comex gold futures prices are firmly higher in early U.S. trading Wednesday, ahead of U.S. Federal Reserve events that are expected to improve the precious metals and other markets. June Comex gold last traded up $16.60 at $1,394.20 an ounce. Spot gold was last cited up $19.80 at $1,396.25.
The market generally is awaiting Federal Reserve Chairman Ben Bernanke’s speech on the economy and monetary policy before the Congress later in the morning. The Fed’s FOMC minutes are also will be released Wednesday afternoon. Traders and investors will watch closely Bernanke’s statements and the FOMC minutes for signs on the U.S. central bank’s potential course of monetary policy in the coming weeks and months.
It will take three or four months as of this moment to decide if the U.S. central bank should begin narrowing down its monthly bond-buying program, said by New York Federal Reserve Bank President William Dudley late Tuesday.
On Wednesday at its regular meeting at the Bank of Japan made no main changes to its monetary policy, which was what the market predicted. The BOJ said the Japanese economy is beginning to recover. The Japanese yen continued its decline on the BOJ news.
U.S. economic data that will be released Wednesday contains the weekly MBA mortgage applications survey, the weekly DOE energy stocks report, existing home sales, and the FOMC minutes.
The London previous P.M. fixing of $1,360.75 and A.M. gold fixing is $1,385.25.
Technically speaking, on the daily bar chart prices are in a 7.5-month-old downtrend. However, hard improvements in gold to end this week would produce the beginnings of a big and bullish double-bottom reversal pattern on the daily bar chart. Bears’ next near-term closing prices under solid technical support at the April low of $1,321.50. The gold bulls’ next upside near-term close above solid technical resistance at $1,400.00. First resistance is sighted at $1,400.00 and then at $1,410.00, as for first support is sighted at $1,380.00 and then at the overnight low of $1,370.60.