Gold prices modestly up ahead of FOMC statement

New York (Dec 11)  Gold prices are a bit higher in early U.S. trading Wednesday, but prices will likely tread water and remain not far from unchanged levels ahead of this afternoon’s conclusion of the FOMC meeting. February gold futures were last up $2.00 an ounce at 1,470.10. March Comex silver prices were last down $0.007 at $16.695 an ounce.

Asian and European stock indexes were mixed weaker overnight. The U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. This Sunday (Dec. 15) is the deadline for new U.S. trade tariffs going into effect against Chinese goods imported into the U.S. While the rhetoric this week has been mostly upbeat on the matter, the history of the U.S.-China trade war is one of distinct highs and lows regarding progress toward a deal. And the marketplace knows President Trump’s mercurial personality. Thus, markets and traders are likely to remain tentative the rest of this week, and slightly leaning toward risk aversion.

Traders and investors are also awaiting the U.S. economic highlight of the week: the Federal Reserve’s Open Market Committee meeting (FOMC) that began Tuesday morning and ends Wednesday afternoon with a statement. The Fed is expected to make no changes in its monetary policy. However, the FOMC statement and Fed Chairman Powell’s press conference will be closely scrutinized for clue on futures monetary policy moves. The European Central Bank also meets on monetary policy Thursday.

The key “outside markets” today see the U.S. dollar index firmer. Meantime, Nymex crude oil prices are weaker and trading around $59.00 a barrel.

KitcoNews