Gold hits daily highs as FOMC leans less hawkish
(Kitco News) - Gold and silver prices are solidly higher and hit daily highs in early afternoon U.S. trading Wednesday, following an FOMC statement that was just a bit more dovish on U.S. monetary policy than expected. A lower U.S. dollar index and lower U.S. Treasury yields at mid-week are also prompting some buying interest. December gold was last up $17.00 at $1,666.50 and December silver was up $0.273 at $19.94.
The Federal Reserve's just-concluded Open Market Committee (FOMC) meeting saw the U.S. central bank raise its main Fed funds rate by 0.75%, to 4.00%, as expected. The FOMC statement said the Fed will take into consideration the health of the U.S. economy after its recent “cumulative tightening.” The market read that statement as leaning less hawkish on U.S. monetary policy going forward. The marketplace now awaits Fed Chairman Jerome Powell's afternoon press conference, hoping he will shed even more light on the Fed's future monetary policy path.
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The U.S. dollar index sold off and U.S. Treasury yields dropped following the FOMC statement. U.S. stock indexes rallied to their daily highs on the FOMC news. Nymex crude oil prices are higher and trading around $90.20 a barrel. The 10-year U.S. Treasury note is yielding 3.99%.
Technically, the gold futures bears still have the firm overall near-term technical advantage. Prices are still in a longer-term downtrend on the daily bar chart. Bulls' next upside price objective is to produce a close above solid resistance at $1,700.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,600.00. First resistance is seen at last week's high of $1,679.40 and then at $1,700.00. First support is seen at today's low of $1,648.60 and then at this week's low of $1,633.60. Wyckoff's Market Rating: 2.5.
The silver bulls have the slight overall near-term technical advantage. Prices are in a two-month-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the October high of $21.31. The next downside price objective for the bears is closing prices below solid support at $18.00. First resistance is seen at this week's high of $20.04 and then at $20.50. Next support is seen at today's low of $19.545 and then at $19.25. Wyckoff's Market Rating: 5.5.
December N.Y. copper closed down 100 points at 346.25 cents today. Prices closed nearer the session low today. The copper bears have the overall near-term technical advantage. However, recent price action suggests a market bottom is in place. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 369.25 cents. The next downside price objective for the bears is closing prices below solid technical support at the September low of 324.30 cents. First resistance is seen at today's high of 350.85 cents and then at the October high of 359.30 cents. First support is seen at this week's low of 336.15 and then at the October low of 330.30 cents. Wyckoff's Market Rating: 4.0.