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Gold price higher as Federal Reserve leans less hawkish

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(Kitco News) - Gold and silver prices are higher in early U.S. trading Thursday, in the wake of the U.S. central bank raising its main interest rate by a quarter-point, but also suggesting rates will not continue to rise. April gold was last up $31.50 at $1,981.40 and May silver was up $0.239 at $23.02.

While the Federal Reserve’s FOMC meeting produced a mostly expected quarter-point rate hike, Fed Chair Powell at his press conference leaned a bit more dovish than he had been in recent months. That boosted the precious metals and briefly rallied the U.S. stock indexes. However, what rattled the U.S. stock market late in the session Wednesday was comments from U.S. Treasury Secretary Yellen at a Senate hearing that the federal government has no plans to protect all bank deposits that are not FDIC-insured.

Global stock markets were mixed overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins.

In overnight news, the Swiss National Bank raised its main interest rate by 50 basis points. The central bank also said the Swiss banking crisis is over. The Bank of England is holding its regular monetary policy meeting Thursday.

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The key outside markets today see the U.S. dollar index slightly up following sharp losses Wednesday. Nymex crude oil futures prices are lower and are trading around $70.50 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.472%.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the Chicago Fed national activity index, new residential sales and the Kansas City Fed manufacturing report.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bulls have the solid 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 in April futures 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 $1,922.30. First resistance is seen at the overnight high of $1,986.10 and then at $2,000.00. First support is seen at the overnight low of $1,967.30 and then at $1,950.00. Wyckoff's Market Rating: 8.0<./p>

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls have the overall near-term technical advantage. Silver bulls' next upside price objective is closing May futures prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at $21.50. First resistance is seen at this week’s high of $23.24 and then at $23.50. Next support is seen at $22.50 and then at this week’s low of $22.29. Wyckoff's Market Rating: 6.5.

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.