(Kitco News) - Gold and silver prices are solidly higher in midday U.S. trading Thursday, on a corrective rebound following strong losses posted Wednesday. Confident bulls stepped in to “buy the dip” and do some perceived bargain hunting today, ahead of this afternoon’s conclusion of the Fed’s FOMC meeting. A solidly lower U.S. dollar index today, a dip in Treasury yields and higher crude oil prices were also friendly daily outside-market elements for the precious metals. December gold was last up $30.30 at $2,706.70 and December silver was up $0.589 at $31.92.
Overshadowed by the U.S. elections but on tap this week is the FOMC meeting of the Federal Reserve that started Wednesday morning and ends early Thursday afternoon with the FOMC statement and press conference from Fed Chair Powell. Most believe the Fed will cut its main interest rate by 0.25%. The Bank of England met today and cut its main interest rate by 0.25%as expected. Sweden’s Riksbank lowered its main rate by half a point.
Bloomberg today reported: “Central bankers the world over are worried about Trump’s policies and how they could lead to slower global economic growth and higher inflation. His win increases uncertainties in Japan for instance, potentially leading to a near-term rate hike there.”
Technically, December gold bulls still have the overall near-term technical advantage and regained some footing today. Bulls’ next upside price objective is to produce a close above solid resistance at the record high of $2,801.80. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the October low of $2,618.80. First resistance is seen at $2,725.00 and then at today’s high of $2,750.30. First support is seen at $2,675.00 and then at today’s low of $2,650.30. Wyckoff's Market Rating: 7.5.
December silver futures bulls have the overall near-term technical advantage and regained footing today. A three-month-old uptrend on the daily bar chart is still in jeopardy. Silver bulls' next upside price objective is closing prices above solid technical resistance at $34.00. The next downside price objective for the bears is closing prices below solid support at the October low of $30.345. First resistance is seen at $32.50 and then at $33.00. Next support is seen at $31.50 and then at this week’s low of $30.94. Wyckoff's Market Rating: 6.5.
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