Gold and silver prices fell in early U.S. trading Thursday as short-term futures traders took more profit after gold hit a record high and silver hit a 14-year high on Tuesday. Both markets saw a price correction.



Global stock markets mostly rose overnight. U.S. stock indexes are expected to open higher and hit record highs when the New York trading day begins.

The Federal Reserve lowered the federal funds rate trading range by 25 basis points to a range of 4.00% to 4.25% on Wednesday afternoon, as widely expected. However, committee members were deeply divided on how to respond to the slowdown in the US economy. However, FOMC members were nearly unanimous in the decision to cut rates, with the only dissenting vote coming from Fed Governor Stephen Milan, who favored a larger rate cut. Fed policymakers are divided on the outlook for interest rates. Fed Chairman Powell said the Fed's job will become more difficult as policymakers face difficult trade-offs in considering whether to continue cutting rates, with some officials concerned about inflation and others about the labor market. Given Milan's dual role as a member of the White House Council of Economic Advisers, Powell faced sharp questions from the media about the Fed's independence. Powell reiterated the central bank's commitment to its nonpartisan mission: "We are deeply committed to our independence... Acting on new data is deeply embedded in our culture." Major U.S. banks - JPMorgan Chase, Citigroup, Wells Fargo and Bank of America - lowered their prime lending rate to 7.25% from 7.50% after the Fed cut interest rates.

In overnight news, China's Shanghai Composite Index rose 0.2% and the Shenzhen Component Index rose 0.5% on Thursday. Mainland China's stock benchmark index hit a multi-year high and tracked global stock market gains after the Federal Reserve cut interest rates by 25 basis points as expected on Wednesday. Optimism about US-China trade talks further boosted risk appetite.

The key outside market developments today were that the U.S. dollar index was slightly higher, while crude oil prices were mostly stable, trading around $64.00 per barrel. The benchmark 10-year U.S. Treasury yield is currently at 4.05%.

U.S. economic data scheduled for release on Thursday includes the weekly initial jobless claims report, the Philadelphia Fed business survey, leading economic indicators and data on international capital flows of U.S. Treasuries.


(Comex Gold Daily Chart Source: Yihuitong)

From a technical perspective, December gold futures bulls have a solid overall near-term advantage. Bulls' next upside price objective is closing prices above strong resistance at $3,800.00. Bears' next near-term downside price objective is pushing futures prices below strong technical support at $3,600.00. First resistance is seen at $3,715.00 and then at this week's high of $3,744.00. First support is seen at the overnight low of $3,667.30 and then at $3,650.00.

December silver futures bulls have a solid overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above strong technical resistance at $45.00. Bears' next downside price objective is closing prices below strong support at $40.00. First resistance is seen at $42.50 and then at $43.00. Next support is seen at this week's low of $41.48 and then at $41.08.

At 22:14 Beijing time, spot gold was trading at $3,641.46 per ounce, down 0.50%. Spot silver was trading at $41.697 per ounce, up 0.12%. COMEX gold was trading at $3,674.6 per ounce, down 1.16%, and COMEX silver was trading at $41.99 per ounce, down 0.38%.