Some price strength in gold, silver ahead of FOMC results

(Kitco News) - Gold and silver prices are modestly up in early morning U.S. trading Wednesday. Traders will remain tentative, however, ahead of the Wednesday afternoon conclusion of the Federal Reserve’s latest monetary policy meeting. August gold futures were last up $4.00 at $1,859.20 and July Comex silver was last up $0.227 at $27.915 an ounce.

The U.S. data point of the week sees the Federal Reserve’s FOMC meeting that began Tuesday morning ending Wednesday afternoon with a statement and new economic projections. While no major changes are expected for U.S. monetary policy, focus will be on the Fed’s tenor on inflation prospects and when the central bank will start to taper its very easy money policies. Fed officials recently have hinted they will begin discussing a timetable for reducing its bond-buying program (quantitative easing) sooner rather than later.

European stock markets were mostly flat overnight, with Asian shares a bit weaker. The marketplace is awaiting the conclusion of the Fed’s FOMC meeting this afternoon. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. Record highs have been scored this week in the S&P 500 and Nasdaq stock index futures. The past several weeks have seen little risk aversion in the marketplace and that’s bullish for the global stock markets.