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(Kitco News) — Gold and silver prices are slightly lower in early US trade on Wednesday, on downward corrections ahead of a US interest rate hike from the Federal Reserve this afternoon. February gold was down $6.00 to $1,819.60 and March silver was down $0.04 to $23.95.
Most equity and financial markets are on pause as major central bank meetings are taking place this week. The Federal Reserve Open Market Committee (FOMC) meeting, which began on Tuesday morning, ends on Wednesday afternoon with a statement, new economic forecasts and a press conference by Fed Chairman Jerome Powell. The FOMC is likely to raise US interest rates by 0.5%. The European Central Bank and Bank of England meet on Thursday and are likely to follow the US Federal Reserve with half a point rate hikes.
Global equity markets were mixed overnight, with European equities lower and Asian equities higher. US stock indices point to slightly lower openings as the New York day session begins.
Major overseas markets today see the weaker US dollar index. Prices on Tuesday hit a 5.5-month low after a slightly cooler-than-expected US consumer price index report. Nymex crude oil prices are firmer and trading around $76.00 a barrel. A major US oil pipeline has been closed due to a leak, and this is supporting Nymex crude oil prices this week. Meanwhile, the benchmark 10-year US Treasury note yield is currently 3.5%.
Other US economic data scheduled to be released on Wednesday include the weekly MBA mortgage application survey, import and export prices and the DOE’s weekly net energy inventories report.
![24 hour live gold chart [Kitco Inc.]](https://news.google.com/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, gold futures bulls have the overall firm short-term technical advantage. Prices are in a five-week uptrend on the daily bar chart. The bulls’ next bullish price objective is to close February futures above the solid resistance at $1,900.00. The bears’ next short-term bearish price objective is to push futures prices below solid technical support at $1,775.00. First resistance is seen at $1,825.00 and then at this week’s high of $1,836.90. First support is seen at $1,800.00 and then at this week’s low of $1,789.00. Wyckoff Market Rating: 6.5
![24 hour live silver chart [ Kitco Inc. ]](https://news.google.com/images/live/silver.gif)
Silver bulls have the firm overall near-term technical advantage. A choppy three-month uptrend is in effect on the daily bar chart. Silver bulls’ next bullish objective is to close March futures above the solid technical resistance at $25.00. The next downside price objective for the bears is to close prices below the solid support at $22.00. First resistance is seen at today’s high of $24.09 and then at this week’s high of $24.39. The next support is seen at Tuesday’s low at $23.49 and then at $23.00. Wyckoff Market Rating: 7.0.
Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept responsibility for loss and/or damage arising from the use of this publication.
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