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(Kitco News) -Comex gold and silver futures are posting solid rallies and have hit fresh six-week highs in the aftermath of the release of the Federal Reserve's FOMC statement following the committee's meeting Wednesday. While the FOMC statement was mostly unchanged from the previous meeting's statement, the U.S. dollar index did sell off modestly and crude oil prices rallied following the report. The FOMC statement did hint to the market place that the Federal Reserve will continue its very accommodative monetary policy for quite some time to come--at least through 2014, said the Fed. Such was also evidenced by the rally in the U.S. Treasury markets and the weakening of the U.S. dollar index. In turn, gold and silver futures rallied as traders did some bargain-hunting following this week's modest selling pressure, and as the key "outside markets" turned more bullish for the precious metals after the FOMC statement--weakening dollar index and firming crude oil prices. The near-term technical postures in gold and silver markets remain in favor of the bullish camps, also. In fact, both markets posted bullish "outside days" up on the daily bar charts Wednesday, whereby the highs were higher and lows were lower than the previous day's trading ranges, with a higher last trade.
February gold last traded up $25.00 an ounce at $1,690.00. March silver last traded up 95 cents an ounce at $32.92.

By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com

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