Gold Modestly Up; No Surprises From FOMC
(Kitco News) - Gold prices ended the U.S. day session modestly higher but off their highs Wednesday. An eroding U.S. dollar index continues to work in favor of the precious metals market bulls. However, the USDX did move well off its daily lows in late trading, which pulled the gold market down from its session highs. April Comex gold futures were last up $2.90 an ounce at $1,343.30. March Comex silver was last up $0.202 at $17.26 an ounce.
The Federal Open Market Committee (FOMC) meeting concluded Wednesday afternoon with a statement that made no changes in U.S. monetary policy. None were expected. The statement said the U.S. economy is gaining strength, to also suggest rising inflation. The market read the report as neutral to maybe just slightly hawkish. Other markets saw little reaction to the FOMC statement. This was Fed Chair Janet Yellen’s last FOMC meeting.
The other key “outside market” on Wednesday saw Nymex crude oil prices trade near steady around $64.50 a barrel.
Wednesday morning’s ADP National Employment Report showed a rise of 234,000 jobs in January. Forecasts called for a rise of around 190,000. Gold prices backed off just a bit on the news of a big miss to the upside on the report, but then recovered to set new session highs later in the morning.
Traders are now awaiting Friday morning’s monthly U.S. employment situation report from the Labor Department. This is arguably the most important U.S. data point of the month. The key non-farm payrolls number consensus forecast comes in at up 177,000.
Technically, April gold futures prices closed the day session nearer the session low. The gold bulls still have the overall near-term technical advantage, but need to show fresh power soon to keep a six-week-old uptrend in place on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the January high of $1,370.50. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,320.00. First resistance is seen at today’s high of $1,339.60 and then at $1,350.00. First support is seen at this week’s low of $1,337.50 and then at $1,330.00. Wyckoff's Market Rating: 6.5
March silver futures prices closed nearer the session high today. The silver bulls have the slight overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the January low of $16.735. First resistance is seen at today’s high of $17.375 and then at this week’s high of $17.47. Next support is seen at this week’s low of $17.04 and then at $17.00. Wyckoff's Market Rating: 5.5.
March N.Y. copper closed up 120 points at 320.10 cents today. Prices closed near mid-range. The copper bulls have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the December high of 332.20 cents. The next downside price objective for the bears is closing prices below solid technical support at the January low of 310.80 cents. First resistance is seen at this week’s high of 323.55 cents and then at 325.00 cents. First support is seen at this week’s low of 315.20 cents and then at 312.50 cents. Wyckoff's Market Rating: 6.5.