Price rebounds for gold, silver as FOMC on deck
NEW YORK (October 29) Gold and silver prices are solidly higher in early U.S. trading Wednesday, on corrective rebounds following recent strong selling pressure that has inflicted serious chart damage to suggest near-term market tops are in place. The fundamentally bullish aspect of a U.S. interest rate cut today is also supporting the precious metals markets. December gold was last up $47.70 at $4,030.50. December silver prices were up $0.866 at $48.20.
The Federal Reserve’s Open Market Committee meeting that began Tuesday morning ends this afternoon with a statement and press conference from Fed Chairman Jerome Powell. The FOMC this afternoon is widely expected to deliver a second straight 0.25% interest-rate cut. While the Fed rate cut is widely expected, traders and investors will closely examine the FOMC statement and Powell’s press conference, for any fresh clues on the trajectory of U.S. monetary policy in the coming months. Said Bloomberg in a report: “Traders are looking to Powell’s remarks to determine their next move at a time when U.S. policymakers have grown increasingly divided on the outlook for interest rates. A softening labor market is bolstering the case for easing, although that’s being complicated by data showing that a core measure of inflation remains well above target. Swaps pricing indicates that investors have fully priced in a quarter-point rate reduction at the Fed decision on Wednesday, and around three more cuts by July. But Powell’s comments may alter the equation, which could set the stage for Treasuries to snap out of their inertia.”
Global stock markets were mixed overnight, while U.S. stock indexes are pointed to higher openings when the New York day session begins. The S&P and Nasdaq stock indexes poked to record highs overnight.
In other overnight news, Trump says U.S., South Korea trade deal close. President Trump said the U.S. has a “special bond” with South Korea as he addressed a meeting of corporate leaders at the Asia-Pacific Economic Cooperation summit. Trump expressed optimism a trade deal with South Korea “will be finalized very soon” and said any agreement with Chinese President Xi Jinping would benefit the region broadly. Trump stressed economic ties during his address, noting plans for joint shipbuilding efforts between South Korean and U.S. firms, and called South Korea “cherished American friend and a close ally.”
The key outside markets today see the U.S. dollar index higher. Crude oil prices are firmer and trading around $60.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 3.99%.
KitcoNews
