Gold Weaker on Chart Consolidation; FOMC Minutes on Deck

New York (Apr 9)   Gold prices are modestly lower in early U.S. trading Tuesday. Technical chart consolidation is featured as traders and investors are awaiting Wednesday afternoon’s release of the minutes of the latest meeting of the Federal Reserve’s Open Market Committee (FOMC). June gold was last down $4.40 at $1,304.70 an ounce. Spot gold was last quoted down $4.50 at $1,304.00. May Comex silver last traded down $0.242 at $19.81 an ounce.

The FOMC report is arguably the most important data point of the week for the market place. Data from the Fed have become key inflection points for the market place the past several months. FOMC minutes in previous months have been markets-movers.

Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, monthly wholesale trade, and the weekly DOE liquid energy stocks report.

The Russia-Ukraine matter is moving back toward the front burner of the market place this week. Pro-Russian demonstrators in Ukraine have become more active recently. This situation could flare up quickly and once again become a geopolitical flash point.  Gold would likely see safe-haven demand increase on any escalation of this conflict.

The slumping U.S. dollar index has been a feature in the market place this week. If the greenback continues to sink it would become a more significant bullish underlying factor for the raw commodity sector, including precious metals.

Source: Kitco News