(Kitco News) - Gold prices are modestly down and silver solidly up in afternoon U.S. trading Wednesday, showing no significant price reactions in the immediate aftermath of the Federal Reserve leaving its monetary policy unchanged, as was widely expected. February gold was last down $2.50 at $2,765.50. March silver was up $0.483 at $31.35.
The FOMC statement said the U.S. unemployment rate has stabilized at a lower level and labor conditions remain “solid.” However, the statement said inflation remains “somewhat elevated.” Traders are now awaiting Fed Chairman Powell’s press conference. The marketplace will also closely scrutinize any comments from President Trump immediately following the Fed meeting.
Traders see the European Central Bank cutting its main rate at its monetary policy meeting Thursday.
The key outside markets today see the U.S. dollar index higher. Nymex crude oil futures prices are lower and trading around $73.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.585%--up slightly after the FOMC statement.
Technically, February gold futures bulls have the firm overall near-term technical advantage. Prices are trending up on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $2,826.30. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,700.00. First resistance is seen at this week’s high of $2,778.10 and then at $2,800.00. First support is seen at $2,750.00 and then at this week’s low of $2,732.00. Wyckoff's Market Rating: 7.0.
March silver futures bulls have regained the slight overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $32.00. The next downside price objective for the bears is closing prices below solid support at the December low of $29.145. First resistance is seen at today’s high of $31.765 and then at $32.00. Next support is seen at today’s low of $30.755 and then at $30.50. Wyckoff's Market Rating: 5.5.
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