(Kitco News) - Gold and silver prices are sharply higher in midday U.S. trading Thursday, with gold hitting new record highs in spot and futures markets. Silver prices hit a six-week peak. Safe-haven demand is featured, as well as chart-based buying, in the two precious metals. The marketplace remains nervous regarding the new U.S. presidential administration’s trade and foreign policies—especially any new trade tariffs. April gold was last up $50.80 at $2,844.30. March silver was up $1.092 at $32.485.
The Federal Reserve at its FOMC meeting conclusion Wednesday sent a message that it intends to keep U.S. interest rates unchanged for the foreseeable future. The Fed reiterated that “inflation remains somewhat elevated.” However, Fed Chair Powell at his press conference rejected the idea that it was no longer the case that progress had been made on the inflation front. “We did a little language clean-up there” is all, he indicated — “we just chose to shorten that sentence.” Powell declined to comment on how President Trump’s policies may affect the Fed’s policies. Markets showed no major reactions to the FOMC statement or Powell’s presser. The gold and silver market bulls were assuaged because there were no hawkish surprises from the Fed.
The European Central Bank today lowered its interest rates, by 0.25%, for a fifth straight meeting of hikes after data is showing a stagnating Euro zone economy.
The key outside markets today see the U.S. dollar index slightly lower. Nymex crude oil futures prices are near steady and trading around $72.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at around 4.5%.
Technically, April gold futures bulls have the strong 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 $2,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,750.00. First resistance is seen at the contract high of $2,853.20 and then at $2,875.00. First support is seen at $2,822.10 and then at $2,800.00. Wyckoff's Market Rating: 9.0.
March silver futures bulls have the overall near-term technical advantage and have momentum. Prices are in an uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the December high of $33.33. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen at today’s high of $32.80 and then at $33.00. Next support is seen at $32.00 and then at the overnight low of $31.56. Wyckoff's Market Rating: 6.5.
(Hey! My “Markets Front Burner” weekly email report is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. Plus, I’ll throw in an educational feature to move you up the ladder of trading/investing success. And it’s free! Sign up here; it’s real easy. https://www.kitco.com/services
