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Gold price sees modest up-tick on Fed Chair Powell's speech

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(Kitco News) - Gold prices are modestly higher in midday U.S. trading Wednesday and saw the gains come following the release of prepared text of a highly anticipated speech from Federal Reserve Chairman Jerome Powell. Markets are deeming his remarks as leaning slightly more dovish than expected. February gold was last up $8.50 at $1,772.10 and March silver was up $0.644 at $22.08.

It was a very busy day for U.S. economic data, with the highlight being the speech by Powell this afternoon at the Brookings Institution. In his prepared remarks, Powell said the U.S. central bank could slow the pace of tightening as soon as the December meeting. However, he said the Fed will need to hold policy at restrictive levels “for some time.” Powell added that inflation remains far too high and that future rate hikes are warranted. The gold market up-ticked on the news. Traders and investors were watching to see if Powell made a more significant pivot from a hawkish to a bit more dovish U.S. monetary policy stance, given recent U.S. economic data that hints inflation may have peaked.

Other U.S. data released today were a mixed bag. The third-quarter GDP report came in a bit stronger than expected, while the ADP national employment report was a bit weaker than expected.

Global stock markets were mixed to firmer overnight. U.S. stock indexes are mixed at midday.

Reports said public demonstrations in China increased significantly Wednesday after a lull on Tuesday. China security forces are reported to be heavily deployed in major Chinese cities. The protests have prompted Chinese officials to somewhat ease their strict Covid restrictions.


Gold prices stuck in neutral as hedge fund-induced short squeeze runs out of steam

The key outside markets today see the U.S. dollar index firmer. Nymex crude oil prices are higher on a strong rebound after hitting an 11-month low Monday, and are trading around $80.25 a barrel. There are some reports OPEC at its meeting next week will consider cutting its collective crude oil production. Other reports say the cartel will leave its production unchanged. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently at 3.746%.

Live 24 hours gold chart [Kitco Inc.]

Technically, February gold futures bulls have the overall near-term technical advantage. Bulls' next upside price objective is to produce a close above solid resistance at the November high of $1,806.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at today's high of $1,779.00 and then at $1,790.00. First support is seen at this week's low of $1,752.90 and then at $1,740.00. Wyckoff's Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures bulls have the overall near-term technical advantage. Prices are in a choppy three-month-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the November high of $22.50. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at today's high of $22.14 and then at the November high of $22.50. Next support is seen at today's low of $21.355 and then at $21.00. Wyckoff's Market Rating: 6.5.

March N.Y. copper closed up 915 points at 373.15 cents today. Prices closed nearer the session high today. The copper bulls have gained the slight overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the November high of 394.70 cents. The next downside price objective for the bears is closing prices below solid technical support at 350.00 cents. First resistance is seen at today's high of 376.55 cents and then at 380.00 cents. First support is seen at today's low of 363.40 cents and then at this week's low of 354.70 cents. Wyckoff's Market Rating: 5.5.

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.