(Kitco News) - Gold prices have traded both sides of unchanged in afternoon U.S. dealings Wednesday, following a U.S. central bank interest rate reduction that was widely expected by the marketplace. Mild profit taking from the shorter-term futures traders was featured today after gold hit a record high Tuesday. December gold was last up $2.40 at $3,727.00. December silver prices were down $0.557 at $42.38.
The Federal Reserve’s Open Market Committee (FOMC) meeting ended this afternoon with the Fed cutting the fed funds rate range by 0.25%, to 4.00 to 4.25%. The move was widely expected and was the first rate cut since November of last year. The FOMC statement showed the majority of FOMC members do not want to lower U.S. interest rates any more this year. Reporters will grill Powell at his press conference this afternoon, not only on the trajectory of the U.S. economy and interest rates but also on the Fed’s independence. So far the marketplace has not reacted much to the FOMC statement.
The key outside markets today see the U.S. dollar index up a bit, while crude oil prices are slightly weaker and trading around $64.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 3.997% and down slightly from just before the FOMC statement.
Technically, December gold futures bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,600.00. First resistance is seen at this week’s high of $3,739.90 and then at $3,750.00. First support is seen at today’s low of $3,685.00 and then at $3,650.00. Wyckoff's Market Rating: 8.5.
December silver futures bulls have the solid overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $45.00. The next downside price objective for the bears is closing prices below solid support at $40.00. First resistance is seen at $42.50 and then at $43.00. Next support is seen at the overnight low of $41.55 and then at $41.08. Wyckoff's Market Rating: 8.0.
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