Gold, silver firmer, get slight boost from FOMC minutes

Gold and silver prices are higher in early-afternoon U.S. trading Tuesday, and got a small lift in the aftermath of the most important U.S. data point of the week: the Federal Reserve’s Open Market Committee (FOMC) minutes. August gold futures were last up $13.20 at $1,807.00 and September Comex silver was last up $0.121 at $26.30 an ounce.

Wednesday afternoon’s release of the minutes of the June FOMC meeting showed the U.S. central bankers debated on how and when to start to pull back the super easy monetary policies of the past few years. The FOMC minutes said the process of reopening the U.S. economy has been uneven and that the risks to inflation are tilted to the upside. However, the minutes said that inflationary pressures recently have been tied mostly to supply disruptions. Most FOMC members expected inflation increase to subside. The members said that “tapering” of the Fed’s bond-buying program (quantitative easing) will likely see conditions met for such a move come earlier than expected. Gold prices moved just a few dollars higher and silver a few cents higher following the FOMC minutes’ release. At first blush, it appears there is fodder in the FOMC minutes that can be friendly for both the U.S. monetary policy hawks and the doves. Market watchers were hoping for better clues on the timing of the Fed’s policy moves that are likely to be gradual tightening of monetary policy in the coming months.

The key outside markets today saw the U.S. dollar index higher. Nymex crude oil futures were lower and trading around $72.00 a barrel. Prices Tuesday hit a 6.5-year high of $76.98. Meantime, the yield on the benchmark U.S. Treasury 10-year note is presently fetching 1.326%. Treasury yields have been falling recently and this week hit a four-month low.

Technically, August gold futures bulls and bears are on a level overall near-term technical playing field and the bulls have some momentum. A four-week-old price downtrend on the daily bar chart has been negated this week. Bulls’ next upside price objective is to produce a close above solid resistance at $1,850.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the June low of $1,750.10. First resistance is seen at this week’s high of $1,815.70 and then at $1,825.00. First support is seen at today’s low of $1,794.10 and then at this week’s low of $1,784.70. Wyckoff’s Market Rating: 5.0

September silver futures bulls and bears are on a level overall near-term technical playing field. A five-week-old price downtrend on the daily bar chart has been negated. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $27.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at today’s high of $26.545 and then at this week’s high of $26.91. Next support is seen at $26.00 and then at the June low of $25.58. Wyckoff’s Market Rating: 5.0.

September N.Y. copper closed up 670 points at 431.80 cents today. Prices closed nearer the session high today. The copper bulls have the slight overall near-term technical advantage. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 450.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 400.00 cents. First resistance is seen at today’s high of 436.20 cents and then at this week’s high of 440.25 cents. First support is seen at this week’s low of 423.40 cents and then at 420.00 cents. Wyckoff’s Market Rating: 5.5.