Gold prices up on very busy data day, including FOMC decision

October 30, 2019

New York (Oct 30)  Gold and silver prices are moderately up in early U.S. trading Wednesday. The U.S. economic data pace picks up dramatically starting today and for the rest of this week, which will produce bigger price moves in the metals markets. December gold futures were last up $4.60 an ounce at 1,495.20. December Comex silver prices were last up $0.064 at $17.895 an ounce.

The just-released October U.S. ADP national employment report came out with a gain of 125,0000 jobs. The report was expected to show a rise of 100,000 jobs in October. Gold prices down-ticked just a bit on the report. This report precedes the more important jobs report from the Labor Department out Friday morning.

Asian and European stock indexes were mostly weaker in trading overnight. U.S. stock indexes are pointed toward steady to slightly lower openings when the New York day session begins.

Focus of traders and investors today is squarely on the Federal Reserve’s Open Market Committee (FOMC) meeting that began Tuesday morning and ends Wednesday afternoon with a statement. It’s widely expected the Fed will cut interest rates by 0.25%. What is not so clear is the glide path the Fed will issue on future monetary policy moves in this afternoon’s statement and the follow-up press conference from Fed Chairman Jerome Powell. Look for active trading in the markets, including the metals, in afternoon trading Wednesday following the FOMC statement.

Also on Wednesday morning the first estimate of third-quarter U.S. gross domestic product is out, and is seen at up 1.6% on an annual basis.

In overnight news, the Euro zone issued its October economic sentiment indicator and it came in at the lowest level in 4.5 years.

The key “outside markets” find Nymex crude oil prices near steady in early U.S. trading today and trading around $55.50 a barrel. Meantime, the U.S. dollar index is slightly lower. 

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

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls have the overall near-term technical advantage but are fading this week. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,525.00. Bears' next near-term downside price breakout objective is pushing December futures prices below solid technical support at the October low of $1,465.00.


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