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(Kitco News) - Gold prices are a bit lower and lost decent earlier gains in the wake of a bearish lean by the Federal Reserve on its monetary policy—despite the central bank pausing on its interest-rate-increase cycle. August gold was last down $0.90 at $1,958.10 and July silver was up $0.168 at $23.99.
The just-released statement from the FOMC meeting of the Federal Reserve that began Tuesday morning and ended early Wednesday afternoon saw the Fed leave interest rates unchanged, as expected. However, the statement leaned hawkish, saying at least two more interest rate hikes are coming this year and a Fed funds rate of 5.6% is expected by the end of this year. The statement said the U.S. economy continues to expand at a modest pace. Traders are now awaiting the press conference from Fed Chairman Powell.
Meantime, today’s May producer price index came in down 0.3% from April, which was a bit lower than market expectations. Tuesday’s consumer price index report came in as expected at up 4.0%, year-on-year.
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| Inflation figures could be government 'gaslighting', true inflation is 2-3 times higher - Michael Wilkerson |
U.S. stock indexes sold off sharply after the hawkish FOMC statement. The U.S. dollar index recouped earlier solid daily losses and is trading just slightly down. U.S. Treasury yields rose after the FOMC statement. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.847%. Nymex crude oil prices are lower and trading around $68.25 a barrel.
![Live 24 hours gold chart [Kitco Inc.]](/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, August gold futures bulls have the overall near-term technical advantage amid recent choppy trading. Bulls’ next upside price objective is to produce a close above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the May low of $1,949.60. First resistance is seen at today’s high of $1,973.90 and then at last week’s high of $1,987.80. First support is seen at this week’s low of 1,953.00 and then at last week’s low of $1,953.80. Wyckoff's Market Rating: 6.0
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
July silver futures 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 $25.00. The next downside price objective for the bears is closing prices below solid support at the May low of $22.785. First resistance is seen at this week’s high of $24.52 and then at last week’s high of $24.62. Next support is seen at this week’s low of $23.665 and then at $23.50. Wyckoff's Market Rating: 6.5.
July N.Y. copper closed up 155 points at 384.70 cents today. Prices closed nearer the session high today and hit a four-week high. The copper bulls and bears are back on a level overall near-term technical playing field. Prices are in a fledgling uptrend on the daily bar chart. 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 the May low of 354.50 cents. First resistance is seen at today’s high of 387.40 cents and then at 390.00 cents. First support is seen at today’s low of 379.80 cents and then at this week’s low of 373.50 cents. Wyckoff's Market Rating: 5.0.
