Oil Steady But Eyeing FOMC Meeting

Gold prices are firmer in quieter early U.S. trading Wednesday on another mild short-covering and bargain-hunting rebound following recent declines. December Comex gold was last up $2.20 an ounce at $1,325.90. December Comex silver was last up $0.10 at $19.07 an ounce.

The world marketplace is looking forward to the next big data point: next week’s meeting of the Federal Reserve’s Open Market Committee (FOMC). Trading may be more subdued ahead of the meeting, which begins next Tuesday and ends next Wednesday afternoon. The markets are putting just slight odds on the prospect of the Fed raising rates at that meeting. The more likely date of a U.S. rate hike would be in December, according to traders and investors.

World stock markets stabilized Wednesday following selling pressure seen earlier this week. The recent decline in crude oil prices has helped to weigh on world stock markets. Asian stocks did see modest selling pressure, following the lead of lower closes in the U.S. stock indexes Tuesday. A rise in the Chinese yuan overnight borrowing cost, to above 8%, did cause some anxiety among Asian traders. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins.

Crude oil prices are weaker Wednesday, on follow-through pressure from solid losses Tuesday after the International Energy Agency, in its monthly report, lowered its forecast for world oil demand this year. The other key “outside market” finds the U.S. dollar index trading slightly lower Wednesday morning.

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

via Kitco

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.