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Asia Preview Gold, Silver and Crude Oil Prices

US Gold futures prices finished pit trade with modest losses in quiet trading Tuesday.

Traders squared their open futures positions and some weak Longs exited their trades ahead Wednesday afternoon’s outcome of the US Federal Reserve FOMC meeting.

Feb Gold last traded down 5.20 at 1,709.20 oz.

Spot Gold was last quoted down 4.60 at 1,708.50 oz.

Mar Comex Silver last traded down 0.432 at 32.945 oz.

The US Federal Reserve’s “Operation Twist” program is scheduled to end this month and the FOMC members will decide whether to extend a bond-buying program.

Many observers believe the Fed will announce it will continue to purchase longer-term US Treasuries, while stopping its sales of shorter-term government debt, as was the case in the Twist Operation. The new plan would mean printing of “Greenbacks” by the Fed and would be raw-commodity market Bullish, including Bullish for Gold and Silver markets.

Some traders see the QE-4 move by the Fed already factored into the market place and markets’ price structures. I do not think that is the case.

In the US attention is on the F-Cliff tax increases and spending cuts that looms. There is no apparent movement from either side. US House Speaker Boehner said Tuesday that the Obama administration needs to move first. The market sees the odds a bit higher than not that there will be a last-minute agreement among US lawmakers to avoid the F-Cliff. The situation continues as a Bearish drag on many markets, including the raw commodities and equity markets.

The feature overnigh was the German ZEW economic expectations index rising to a much higher-than-expected reading of 6.9 in December versus November’s – 15.7. The report boosted European stocks and the EUR, while Spanish and Italian bond yields fell.

The USD index was lower Tuesday, as the “Greenback Bulls” faded. The weaker USD limited selling pressure in the precious metals markets Tuesday.

Nymex Crude Oil futures prices were weak and choppy Tuesday.

Crude Oil (WTI) 85.63 0.07 (0.08%)

The Crude Oil Bulls have faded a bit too. There is an OPEC meeting this week in Vienna. These 2 Key outside markets continue to impact the precious metals market daily.

The London PM Gold fixing is at 1,710.00 Vs the prior London PM fixing of 1,712.50.