Gold gains, silver solidly up and sets new record high

NEW YORK (December 9) Gold prices are higher in midday U.S. trading. Silver is sharply up and set another record high, at $61.055, basis March Comex futures, as of this writing. Technical buying is featured in both metals today, as their near-term and longer-term charts remain fully bullish. February gold was last up $26.10 at $4,244.40. March silver prices were up $0.725 at $59.13.

The Federal Reserve’s Open Market Committee (FOMC) began its monetary policy meeting this morning, with the meeting ending Wednesday afternoon with an FOMC statement and then a press conference from Fed Chair Jerome Powell. Markets are pricing in a 90% chance of a 0.25% U.S. interest rate cut at from the Fed this week. However, market expectations are now growing that the FOMC statement and Fed Chairman Powell’s comments at his press conference may lean more hawkish on U.S. monetary policy—namely due to worries about sticky inflation. News Monday that U.S. producer inflation reports for October and November that were expected to be released later this week have now been delayed until January threw more uncertainty into the present U.S. inflation situation.

U.S. stock indexes are modestly firmer at midday and mostly pausing ahead of the FOMC results.

The key outside markets today see the U.S. dollar index slightly up. Crude oil prices are weaker and trading around $58.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.15%.

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