Gold, silver rally after 0.25% Fed rate hike
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(Kitco News) - Gold and silver prices are solidly higher in early-afternoon U.S. trading Wednesday, in the immediate aftermath of a 0.25% interest rate increase from the Federal Reserve, which was mostly in line with market expectations. April gold was last up $19.30 at $1,959.30 and May silver was up $0.455 at $22.86.
The Federal Reserve's FOMC meeting concluded Wednesday afternoon with the 25-basis-point rate hike. The FOMC statement said one more rate hike this year is probable and that the current banking crisis will likely have a negative impact on the U.S. economy. The FOMC statement dropped its wording referring to ongoing increases in interest rates, which the marketplace is initially deeming as leaning less hawkish on U.S. monetary policy. As of this writing, traders were awaiting Fed Chairman Powell's press conference. The Bank of England holds is regular monetary policy meeting Thursday.
Global stock markets were mixed overnight. U.S. stock indexes are firmer in afternoon trading.
The U.S. and European bank turmoil is still a dark cloud hanging over the marketplace and curtailing risk appetite. Said market analyst Craig Erlam of OANDA: "It very much feels like we're just taking one day at a time…. Every day that passes without drama is one closer to the point at which we can put the mini-banking crisis behind us. But it's still early days and investors are all too aware of that, which is why we're seeing a tentative recovery at this point."
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The key outside markets today see the U.S. dollar index solidly lower. Nymex crude oil futures prices are higher and are trading around $70.50 a barrel, after hitting a 15-month low Monday. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.526%.
Technically, April gold futures bulls have the firm overall near-term technical advantage. Prices are in a fledgling uptrend on the daily bar chart. Bulls' next upside price objective is to produce a close above solid resistance at this week's high of $2,014.90. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at $1,975.20 and then at Tuesday's high of $1,988.70. First support is seen at today's low of $1,936.50 and then at $1,922.70. Wyckoff's Market Rating: 7.5
May silver futures prices hit a seven-week high today. The silver bulls have the overall near-term technical advantage. Prices are in a fledgling uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at $21.00. First resistance is seen at today's high of $23.025 and then at $23.25. Next support is seen at this week's low of $22.29 and then at $22.00. Wyckoff's Market Rating: 6.5.
May N.Y. copper closed up 455 points at 404.00 cents today. Prices closed nearer the session high today. The copper bears still have the slight overall near-term technical advantage. Prices are still in a two-month-old downtrend on the daily bar chart, but now just barely. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the February high of 421.30 cents. The next downside price objective for the bears is closing prices below solid technical support at the March low of 382.20 cents. First resistance is seen at today's high of 405.75 cents and then at 410.00 cents. First support is seen at today's low of 397.15 cents and then at Tuesday's low of 392.85 cents. Wyckoff's Market Rating: 4.5.