Gold, Silver Prices Rise; FOMC A Non-Event
(Kitco News) - Gold and silver prices ended the U.S. day session higher Wednesday, with silver scoring solid gains. Short covering in the futures market and bargain hunting in the cash market were featured in both metals. December Comex gold was last up $6.40 an ounce at $1,276.70. December Comex silver was last up $0.437 at $17.13 an ounce.
The Federal Reserve’s FOMC meeting that began Tuesday morning ended Wednesday afternoon with a statement that saw very little reaction from the markets. No monetary policy changes were enacted, as expected. The FOMC statement said the U.S. economy is expanding enough to warrant gradual interest rate increases down the road. It’s expected the FOMC will slightly raise U.S. interest rates at the next meeting in December.
The ADP national employment report for October that was released Wednesday morning showed a rise of 235,000. The number was expected to be up 190,000. The upbeat ADP report did back gold prices down a few dollars from its overnight high.
It is expected the Trump administration will name its nominee for the next Federal Reserve chairman on Thursday. That news could move the markets. Jerome Powell is expected to get the nod, but it’s not a clear-cut consensus he will be the pick.
Friday brings the U.S. employment report for October. The key non-farm payrolls number is forecast to come in at up 315,000.
The Bank of England holds its monetary policy meeting on Thursday It is expected the BOE will tighten its monetary policy at Thursday’s meeting.
The world markets showed little reaction to a terrorist attack in New York City late Tuesday that killed at least eight people.
The key “outside markets” on Wednesday saw the U.S. dollar index firmer. The greenback bulls have the overall near-term technical advantage. Meantime, Nymex crude oil futures prices were weaker on mild profit taking after hitting a six-month high overnight. Prices are trading just above $54.00 a barrel. The recently rallying crude oil market is a bullish element for the precious metals markets.
Technically, December gold futures prices closed nearer the session high today. Bulls and bears are on a level overall near-term technical playing field amid recent choppy trading. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the October low of $1,262.80. First resistance is seen at today’s high of $1,281.80 and then at last week’s high of $1,285.30. First support is seen at this week’s low of $1,268.30 and then at $1,262.80. Wyckoff's Market Rating: 5.0
December silver futures prices closed nearer the session high today. The silver bulls have regained the slight overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the October low of $16.345. First resistance is seen at $17.345 and then at $17.50. Next support is seen at $17.00 and then at last week’s low of $16.60. Wyckoff's Market Rating: 5.5.
December N.Y. copper closed up 400 points at 314.10 cents today. Prices closed near mid-range. The copper bulls have the firm overall near-term technical advantage. However, recent price action suggests a near-term market top is in place. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the October high of 325.95 cents. The next downside price objective for the bears is closing prices below solid technical support at 300.00 cents. First resistance is seen at today’s high of 318.30 cents and then at 320.00 cents. First support is seen at today’s low of 310.75 cents and then at last week’s low of 307.30 cents. Wyckoff's Market Rating: 6.5.