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Gold, Silver Prices Push Higher On Non-Hawkish FOMC Statement

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(Kitco News) - Gold and silver prices moved moderately higher in the wake of a somewhat dovish FOMC statement from the Federal Reserve Wednesday afternoon. The Fed officials signaled they are not worried about inflationary price pressures becoming problematic. Such suggests the U.S. central bank won’t become too aggressive on raising interest rates. June Comex gold futures were last up $4.20 an ounce at $1,311.40. July Comex silver was last up $0.363 at $16.485 an ounce.

The key U.S. markets event Wednesday is the Federal Reserve’s Open Market Committee (FOMC) meeting that just ended with a statement. No change in U.S. interest rates was announced, as expected. On the inflation front, FOMC members said they expect U.S. inflation to be around 2.0% on an annual basis, which is right where the Fed wants it.

On Monday the U.S. Commerce Department issued a report saying overall U.S. price inflation, via personal consumption expenditures, has reached the Fed’s goal of 2.0% annually. This latest statement implies two more interest rate increases this year, with the first one being in June.

Another important U.S. data point today was the ADP national employment report for April, which showed a rise of 204,000. The number was forecast to be up 190,000 jobs. The gold market moved little after the release of this report.

A U.S. high-level trade delegation travels to China Thursday to try to avert a trade war between the world’s two largest economies.

On Friday is the U.S. employment report from the Labor Department—arguably the most important U.S. data point of the month.

The outside markets today saw the U.S. dollar index higher and hitting another 4.5-month high. Meantime, Nymex crude oil prices were slightly up and trading around $67.50 a barrel.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls and bears are on a level overall near-term technical playing field, but the bears have momentum on their side. A close below major psychological support at $1,300.00 would open the door to a larger leg down in prices in the near term. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,337.60. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00. First resistance is seen at today’s high of $1,312.50 and then at Tuesday’s high of $1,317.40. First support is seen at $1,300.00 and then at $1,290.00. Wyckoff's Market Rating: 5.0

Live 24 hours silver chart [ Kitco Inc. ]

The silver bears still have the overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the December low of $15.805. First resistance is seen at today’s high of $16.47 and then at $16.58. Next support is seen at today’s low of $16.175 and then at this week’s low of $16.07. Wyckoff's Market Rating: 3.0.

July N.Y. copper closed up 300 points at 306.70 cents today. Prices closed near mid-range today. The copper bulls and bears are on a level overall near-term technical playing field. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the April high of 321.80 cents. The next downside price objective for the bears is closing prices below solid technical support at the March low of 295.85 cents. First resistance is seen at today’s high of 308.80 cents and then at 310.00 cents. First support is today’s low of 304.75 cents and then at this week’s low of 301.95 cents. Wyckoff's Market Rating: 5.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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