Gold Price Near Steady In Quieter, 2-Sided Trading Session

New York (May 2)  Gold prices were ending a lackluster U.S. day session near steady levels after hitting a three-week low in earlier trading Tuesday. The market visited both sides of unchanged during the session. There have been no major, market-sensitive news developments in recent sessions, which has allowed the safe-haven metal to continue to drift sideways to lower. June Comex gold was last up $0.60 an ounce at $1,256.10. July Comex silver was last down $0.005 at $16.775 an ounce.

The markets’ data-point highlights of the week are the Federal Reserve’s Open Market Committee (FOMC) meeting that began Tuesday morning and ends Wednesday afternoon with a statement, and Friday morning’s U.S. jobs report from the Labor Department. No change in U.S. monetary policy is expected at this week’s FOMC meeting. However, as usual, the wording of the FOMC statement released early Wednesday afternoon will be parsed for any clues on future U.S. monetary policy moves. Trading in many markets, including gold and silver, could become more active after the FOMC statement is released at 2:00 p.m. EDT Wednesday.

Reports said the Volatility Index (VIX) for the stock market dropped to its lowest level in a decade on Monday. In technical jargon, this is called a collapse in volatility, which precedes bigger price moves forthcoming. In layman’s terms it’s called the calm before the storm. If volatility in the stock market picks up in the near future, then it’s likely gold trading will become more active, too.

The key outside markets on Tuesday saw the U.S. dollar index trading near steady. The greenback bears still have the overall near-term technical advantage. Meantime, Nymex crude oil prices were lower as the bears have the near-term technical advantage.

Live 24 hours gold chart [Kitco Inc.]

Technically, June gold futures prices closed near mid-range today. The gold bulls and bears are on a level overall near-term technical playing field, but the bears still have some momentum on their side. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,241.50.

Source: KitcoNews