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Gold Market Treading Water As FOMC Meeting Begins !

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Gold Market Treading Water As FOMC Meeting Begins

 

Tuesday July 26, 2016 08:28

 

(Kitco News) - Gold prices are trading near steady in early U.S. dealings Tuesday. Traders and investors are keenly focused upon two central bank meetings taking place this week. August Comex gold was last up $0.30 an ounce at $1,319.80. September Comex silver was last up $0.058 at $19.705 an ounce.

 

World stock markets were mostly steady overnight and U.S. stock indexes are pointed toward near steady openings when the New York day session begins. U.S. stock traders and investors have been examining second-quarter corporate earnings reports that are being released.

However, the major events in the marketplace this week will be the U.S.  Federal Reserve’s Open Market Committee (FOMC) that begins Tuesday and ends Wednesday at midday with a statement. No change is expected in U.S. monetary policy this week. Also, the Bank of Japan meets Thursday and Friday. It is expected the BOJ will announce some sort of a new monetary policy stimulus package. A Japanese newspaper reported Tuesday that any announced BOJ stimulus package will not be an aggressive one. That news boosted the Japanese yen against the U.S. dollar, which in turn pressured the Japanese stock market.

The key “outside markets” on Tuesday find the U.S. dollar index lower and Nymex crude oil prices also weaker. Nymex crude oil futures are hovering just below $43.00 a barrel and hit a three-month low overnight. There are once again growing worries about a world oil supply glut.

U.S. economic data due for release Tuesday includes the Johnson Redbook and Goldman Sachs retail sales reports, the S&P/Case-Shiller home price index, the U.S. flash services PMI, new residential sales, the consumer confidence index, and the Richmond Fed business survey.