On Wednesday, in early U.S. trading Comex gold futures prices are modestly higher, sustained by evening and short covering before of the most expected afternoon Federal Reserve meeting. Spot gold was last quoted up $3.00 at $1,371.75. Comex August gold last traded up $3.90 at $1,370.70 an ounce.
European and Asian stock markets were varied once more overnight, and in a holding outline.
The market place impatiently is waiting for the outcomes of the U.S. Federal Reserve’s Open Market Committee (FOMC) that ends Wednesday afternoon. Ben Bernanke, Fed Chairman will still hold a press conference after the FOMC announcement that will take place 2:00 p.m. EDT.
The stronger improbability before of this particular FOMC conference stands up from the extensive range of expert views on what track the U.S. central bank will follow in its monetary policy. It looks as if the small mainstreams of market observers believe the Fed will apply a word for word the time being on its monetary policy. Yet, revived a little better U.S. economic data has led to plans for the Fed that will soon begin to set the basis for its subsequent departure from quantitative easing of monetary policy. Also, there is a little doubt concerning how long it will be before Bernanke states his plans on whether he leaves or stays in his post at the Fed. Most Fed observers believe he’s been in a bad condition, and he will leave the Fed.
There is civil disorder in Brazil and Turkey that investors and traders are watching. If the conditions there take an escalation in violence in the streets, the gold market could face some safe-haven demand surfaces.
On Wednesday, the U.S. dollar index is close to constant at morning and hit a fresh four-month low overnight. The USD bears have the near-term technical advantage, which is an essential bullish effect for the precious metals markets.
The U.S. economic data that will release Wednesday contains, the weekly DOE liquid energy stocks report, the weekly MBA mortgage applications survey and the FOMC interest rate decision.
The London previous P.M. fixing of $1,366.75 and A.M. gold fixing is $1,366.00.
Technically speaking, prices are in an 8-month-old downtrend on the daily bar chart. The gold bears have the general near-term technical advantage. The bears’ next near-term downside breakout price objective is closing prices under solid technical support at the May low of $1,338.00. The gold bulls’ next upside near-term price breakout objective is to create a close over solid technical resistance at the June high of $1,423.30. The first resistance is sighted at $1,375.00 and then at Tuesday’s high of $1,385.40, as for the first support is sighted at Tuesday’s low of $1,360.20 and then at $1,350.00.