(Kitco News) - Gold and silver prices are modestly lower in early U.S. trading Thursday, on some chart consolidation after rallying in the aftermath of the Federal Reserve’s FOMC meeting. June gold was last down $1.70 at $2,309.30. July silver was last down $0.213 at $26.535.
The marketplace has mostly digested the Federal Reserve Open Market Committee (FOMC) meeting that ended Wednesday afternoon. The Fed left U.S. interest rates unchanged, as expected, but said there has been a “lack of further progress” in recent months toward its inflation target of 2% annually. The Fed said it is “strongly committed” to returning inflation to 2% and there will be no rate cuts until that time. Fed Chairman Powell in his press conference ruled out a rate hike coming soon. While the Fed leaned hawkish on U.S. monetary policy, there was nothing in the FOMC statement or Powell’s comments that surprised the marketplace. The marketplace seemingly breathed a sigh of relief the FOMC statement and Powell were not even more hawkish. Gold and silver prices rallied after the meeting ended.
Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed to toward higher openings when the New York day session begins.
Friday morning comes the April U.S. jobs report from the Labor Department. The key non-farm jobs component of the jobs report is expected to show a rise of 240,000, following the March report showing a rise of 303,000. Wednesday’s ADP national employment report for April showed a rise of 192,000 jobs, compared to expectations for a rise of 183,000.
In overnight news, the Japanese yen rose against the U.S. dollar on likely more intervention from the Bank of Japan.
The OECD think tank raised its 2024 global economic growth projection to 3.1% from 2.9%.
The key outside markets today see the U.S. dollar index slightly down. Nymex crude oil prices are higher and trading around $80.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is fetching 4.614%.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the Challenger job-cuts report, the international trade report, preliminary productivity and costs, manufacturers’ shipments and inventories, and the global manufacturing PMI.
Technically, the gold futures bulls have the overall near-term technical advantage but are fading. A price uptrend on the daily bar chart has been negated and prices are starting to trend down on the daily bar chart. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at $2,364.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,200.00. First resistance is seen at the overnight high of $2,336.10 and then at $2,350.00. First support is seen at $2,300 and then at this week’s low of $2,291.70. Wyckoff's Market Rating: 6.0.
The silver bulls and bears are on a level overall near-term technical playing field. A three-week-old price downtrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing July futures prices above solid technical resistance at $28.00. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at $27.00 and then at $27.455. Next support is seen at the overnight low of $26.38 and then at $26.00. Wyckoff's Market Rating: 5.0
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