Gold and silver prices near steady ahead of FOMC conclusion

New York (Jan 29)  Gold and silver prices are trading not far from unchanged in early U.S. futures trading Wednesday. Silver prices did hit a five-week low overnight, following Tuesday’s shellacking. Focus at mid-week is turning away from the coronavirus outbreak and to other matters potentially impacting markets, including this afternoon’s conclusion of the FOMC meeting.February gold futures were last up $1.10 an ounce at 1,570.90. March Comex silver prices were last up $0.027 at $17.485 an ounce.

Asian and European stock markets were mostly firmer overnight. Mainland China markets remain closed for the Lunar New Year holiday. Hong Kong’s stock market did open today, following the holiday, and closed lower. U.S. stock indexes are pointed toward firmer openings when the New York day session begins, following solid gains Tuesday.

While the coronavirus outbreak is still not at all contained, the marketplace at this point is deeming the event as fully factored into market prices. That perception could change. Traders and investors are turning their attention to other matters.

This week’s meeting of the Federal Reserve’s Open Market Committee (FOMC) that began Tuesday morning and ends Wednesday afternoon with a statement is expected to see no change in U.S. monetary policy. Fed watchers will be interested to see if the FOMC statement or Fed Chairman Powell at his press conference will address very short-term credit funding for banks. That rate in past months became unstable, causing overnight lending rates to briefly spike.

The key outside markets today see crude oil prices higher and trading around $54.00 a barrel. Meantime, the U.S. dollar index is slightly higher and is near this week’s two-month high.

Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, advance economic indicators, pending home sales, and the weekly DOE liquid energy stocks report.

Ruters