Gold prices are slightly lower after hitting another record high of $2,617.40, based on Comex December futures, overnight, according to News.Az.
Silver prices are up modestly in early U.S. trading as investors prepare for a big U.S. data week, leading to some position evening in the precious metals market to kick off the week. December gold is currently down $2.10 at $2,608.60, while December silver is up $0.161 at $31.235.
U.S. Federal Reserve Meeting Impact
The highlight of the week is the Federal Reserve’s Open Market Committee meeting, starting on Tuesday morning and ending on Wednesday afternoon with a statement and press conference from Fed Chairman Jerome Powell. Recent market sentiment is leaning towards a 0.5% rate cut as opposed to the previously expected 0.25% rate cut, following a Wall Street Journal headline indicating that “Stock markets now need a bigger Fed rate cut; anything less would hurt.”
Global Economic Impact
In other news, China’s recent economic data has been less than optimistic, leading to calls for increased government stimulus and revisions of growth expectations by the markets. Slowdowns in industrial production and consumer spending, as well as challenges in meeting GDP growth targets, have been reported.
This downturn in China’s economic data could potentially impact the demand for precious metals, considering China’s status as the world’s second-largest economy.
Market Outlook and Key Indicators
Technically, December gold is showing strength with bulls having the near-term advantage. The next major resistance level is at $2,700.00, while support is seen at $2,500.00. December silver futures also favor the bulls, with resistance at $32.46 and support at $29.00.
Looking at the key outside markets, the U.S. dollar index is lower, crude oil prices are up, and the 10-year U.S. Treasury note yield is declining.
Overall, the market sentiment is cautious as investors await the outcome of the Fed meeting and monitor global economic data.
U.S. economic data for Monday is light, with the Empire State manufacturing survey being a notable release.
