All Quiet on Gold Front Ahead of Fed – Sr. Analyst, Jim Wyckoff

Kitco News-- All was quiet on the gold front Wednesday, with the metal trading unchanged ahead of the much anticipated Federal Open Market Committee (FOMC) statement.
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Kitco News-- All was quiet on the gold front Wednesday, with the metal trading unchanged ahead of the much anticipated Federal Open Market Committee (FOMC) statement. Kitco’s spot gold price was last down $0.60 at $1094.90 an ounce. 'As usual the market place is going to parse the statement pretty closely, seeking clues on the precise timing of the Fed’s next interest rate rise,' said Jim Wyckoff, a senior technical analyst at Kitco Metals. Wyckoff explained that some Fed watchers think the U.S. central bank will be constrained from raising rates at its September meeting due to recent developments in the European Union (Greece bailout) and China’s shaky stock market. There will be no press conference from Fed Chair Janet Yellen following the release of the statement. Wyckoff said that technically, December gold futures bears have the solid overall near-term technical advantage. 'Prices are in a 10-week-old downtrend on the daily bar chart,' he explained. 'Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,133.80. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,050.00,' he told Kitco News. On the silver side, Wyckoff said prices are in a two-month-old downtrend on the daily bar chart. 'Bulls’ next upside price breakout objective is closing prices above solid technical resistance at $15.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.00.'