Gold prices were slightly higher early on Wednesday as traders and investors were extra cautious ahead of a statement from the Federal Reserve’s Open Market Committee due later in the global day.
December Comex gold was last down $0.20 at $1,166.00 an ounce. December Comex silver was last down $0.04 at $15.825 an ounce.
The FOMC monetary policy meeting began Tuesday morning and ends
Wednesday afternoon. Very few analysts expect the Fed to hike U.S. interest
rates at this week’s meeting. Recent downbeat world economic
data has much of the marketplace thinking the Fed will not move to
raise interest rates at its December meeting, either, with the majority betting on March.
The slumping crude oil prices are a negative factor for gold.
Nymex crude oil futures last traded at $43.30, up 0.25%, while global benchmark Brent was last seen at $46.88 a barrel, up 0.16%.
Over the past three weeks crude prices have dropped by over $8.00 a barrel. The slumping oil market has injected new worries into the
marketplace, including world stock markets, due to the specter of price
deflation.
European stock markets were mostly higher Wednesday due to recovery in oil prices. London's FTSE 100 gained 0.18% while German DAX added 0.51% and France's CAC 40 rose 0.42%.
Asian stock markets were mostly in the red Wednesday, with China’s Shanghai stock index plunging 1.87% and Japan's Nikkei up 0.16%. Focus in Asia is on this week’s China Communist Party economic planning meeting, which began Monday and ends Thursday. The meeting is expected to result in a new five-year economic blueprint for China.
The world is monitoring a U.S. Navy warship, including warplanes protecting it, sail in international waters near artificial islands created by China in the South China Sea. The U.S. military is taking provocative moves, even if it is within its rights as determined by international maritime law.
U.S. economic data released Tuesday was mostly downbeat but had little impact on the gold and silver markets.
The Conference Board said on Tuesday that its gauge of consumer confidence fell to 97.6 this month from a reading of 102.6 in September.
The report came after U.S. Commerce Department said that total durable goods orders decreased by 1.2% last month, matching forecasts. Core durable goods orders, which exclude volatile transportation items, fell 0.4% in September, compared to expectations for an increase of 0.1%.
Investors' eyes will be turned to China, as German chancellor Angela Merkel heads to Beijing for a two-day trade mission.
Business secretary, Sajid Javid, travels to Brussels for high level talks with senior EU commissioners over the UK steel crisis.
And over in the U.S., the Federal Reserve will conclude its two-day policy meeting (at 6pm GMT).
