Gold price weakens as FOMC still leaning hawkish
(Kitco News) - Gold and silver prices are lower in early-afternoon U.S. trading Wednesday, and extended mild earlier losses after the Federal Reserve raised U.S. interest rates and said more rate hikes are coming. February gold was last down $12.00 at $1,812.80 and March silver was down $0.145 at $23.83.
The just released Federal Reserve’s Open Market Committee (FOMC) meeting statement saw the U.S. central bank raise its key Fed funds rate by 0.5%, as expected. The Fed said it will continue to tighten monetary to tamp down inflation. The marketplace’s initial read on the statement and the economic projections is a bit more hawkish than many expected. Traders are now awaiting a press conference from Fed Chair Jerome Powell. The European Central Bank and the Bank of England meet on Thursday and are likely to follow the U.S. Federal Reserve with half-point rate hikes.
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U.S. stock indexes are lower in the immediate aftermath of the FOMC statement. The other key outside markets today see the U.S. dollar index slightly weaker. Prices Tuesday hit a 5.5-month low following a slightly cooler than expected U.S. consumer price index report. Nymex crude oil prices are firmer and trading around $77.00 a barrel. A major oil pipeline in the U.S. has been shut due to a leak, and that’s supporting Nymex crude oil prices this week. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently 3.539%.
Technically, February gold prices hit a 5.5-month high Tuesday. The gold futures bulls have the firm overall near-term technical advantage. Prices are in a five-week-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,775.00. First resistance is seen at today’s high of $1,824.70 and then at this week’s high of $1,836.90. First support is seen at $1,800.00 and then at this week’s low of $1,789.00. Wyckoff's Market Rating: 7.0
March silver futures prices hit a seven-month high Tuesday. The silver bulls have the solid overall near-term technical advantage. Prices are in a choppy 3.5-month-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at this week’s high of $24.39 and then at $24.75. Next support is seen at this week’s low of $23.32 and then at $23.00. Wyckoff's Market Rating: 7.0.
March N.Y. copper closed up 395 points at 388.10 cents today. Prices closed nearer the session high today. 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 400.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 354.70 cents. First resistance is seen at this week’s high of 392.90 cents and then at the November high of 394.70 cents. First support is seen at this week’s low of 378.60 cents and then at 370.00 cents. Wyckoff's Market Rating: 6.0.