Gold and silver prices modestly up; FOMC decision on deck

New York (Sept 18)  Gold and silver prices are modestly higher in midday U.S. trading Tuesday. Safe-haven demand was featured again today and will likely continue in the near term after the weekend terrorist drone strike that crippled Saudi Arabia’s oil industry. The U.S. and Saudi Arabia are not likely to just sit on their hands, which will keep anxiety in the world marketplace elevated. December gold futures were last up $2.30 an ounce at 1,513.70. December Comex silver prices were last up $0.084 at $18.10 an ounce.

The other big markets event taking place this week is the meeting of the Federal Reserve’s Open Market Committee (FOMC) that began Tuesday morning and ends Wednesday afternoon with a statement. It’s widely believed the FOMC will lower U.S. interest rates by 0.25%. President Trump has been brow-beating the Fed recently to get on the stick and lower interest rates, to make the U.S. more competitive with other nations on trade.

The marketplace was somewhat disappointed China’s central bank did not move more aggressively to ease its monetary policy Tuesday, following some weak economic data the country released this week. However, China’s central bank could soon follow any U.S. rate cut with one of its own.

Nymex crude oil prices are sharply lower and trading around $60.00 a barrel. There was a report today that said Saudi Arabian oil production will be back on line much sooner than initially expected—within weeks, and not within months.

The other key outside market today sees the U.S. dollar index lower on a corrective pullback from recent gains.

KitcoNews