Gold sees little price movement in wake of FOMC minutes
(Kitco News) - Gold and silver prices are modestly lower in afternoon U.S. trading Wednesday, in the immediate aftermath of fresh data from the U.S. Federal Reserve. April gold was last down $1.90 at $1,840.70 and March silver was down $0.265 at $21.625.
The U.S. data point of the day Wednesday saw the minutes from the last meeting of the Federal Reserve Open Market Committee (FOMC) say members agreed on a continued restrictive U.S. monetary policy until inflation is on a sustained path to 2% annually—which will take some time. Some Fed officials wanted a 0.5% rate hike at last month’s FOMC meeting. The FOMC raised the key Fed funds range by only 0.25% last month, which was favored by most FOMC members. The marketplace initially deems the FOMC minutes as containing no big surprises to move the markets. It’s important to note the FOMC meeting took place before the January U.S. jobs report that was much stronger than expected.
Global stock markets were mixed but mostly lower overnight. U.S. stock indexes are slightly higher in afternoon trading, after hitting three-week lows overnight. The stock index bulls have faded recently, including near-term price uptrends on the daily bar chart being negated to suggest near-term market tops are in place.
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The key outside markets today see the U.S. dollar index slightly higher. Nymex crude oil futures prices are solidly lower and trading around $74.00 a barrel. The yield on the benchmark U.S. 10-year Treasury note is presently fetching around 3.9%.
Technically, April gold futures bears have the slight overall near-term technical advantage. A fledgling downtrend is in place on the daily chart. Bulls’ next upside price objective is to produce a close above solid resistance at last week’s high of $1,881.60. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at this week’s high of $1,856.40 and then at $1,870.90. First support is seen at last week’s low of $1,827.70 and then at $1,815.00. Wyckoff's Market Rating: 4.5.
March silver futures bears have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $23.00. The next downside price objective for the bears is closing prices below solid support at $21.00. First resistance is seen at last week’s high of $22.085 and then at $22.31. Next support is seen at the February low of $21.155 and then at $21.00. Wyckoff's Market Rating: 4.0.
March N.Y. copper closed down 400 points at 418.55 cents today. Prices closed near mid-range today. The copper bulls have the firm overall near-term technical advantage and gained more power today. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the January high of 435.50 cents. The next downside price objective for the bears is closing prices below solid technical support at the February low of 397.85 cents. First resistance is seen at this week’s high of 423.70 cents and then at 430.00 cents. First support is seen at today’s low of 414.85 cents and then at this week’s low of 410.15 cents. Wyckoff's Market Rating: 7.5.