Some price strength in gold, silver ahead of FOMC results

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.

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.

The past several weeks have seen little risk aversion in the marketplace and that’s bullish for the global stock markets.

The state-owned Assets Supervision and Administration Commission ordered China’s businesses to control risks and limit their exposure to overseas commodity markets.

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

First resistance is seen at Tuesday’s high of $1,870.90 and then at this week’s high of $1,879.70.

Silver bulls’ next upside price objective is closing July futures prices above solid technical resistance at the May high of $28.90 an ounce.

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