(Kitco News) - Gold prices are near steady in early afternoon U.S. trading and in the immediate aftermath of an as-expected Fed rate cut. Silver is mostly higher but down from the record high hit in earlier trading today. February gold was last down $1.10 at $4,235.00. March silver prices were up $0.29 at $61.14.
The just-concluded Federal Reserve’s Open Market Committee (FOMC) saw the Fed lower the main U.S. interest rate trading range by 0.25%, to 3.50 to 3.75%, as fully expected. The FOMC statement said inflation will remain a bit sticky and that another rate cut may not come for a while. Traders now await a press conference from Fed Chair Jerome Powell. The FOMC statement’s and Powell’s guidance on the trajectory of Fed monetary policy are what the marketplace will be very closely watching today.
The key outside markets today see the U.S. dollar index lower. Crude oil prices are a bit firmer and trading around $58.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.166%.
Note: The gold market operates through two primary pricing mechanisms. The first is the spot market, which quotes prices for on-the-spot purchase and immediate delivery. The second is the futures market, which sets prices for delivery at a future date. Due to year-end positioning market liquidity, the December gold futures contract is currently the most actively traded on the CME.
Technically, February gold futures bulls’ next upside price objective is to produce a close above solid resistance at the contract/record high of $4,433.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $4,100.00. First resistance is seen at this week’s high of $4,251.70 and then at $4,285.00. First support is seen at this week’s overnight low of $4,197.80 and then at $4,150.00. Wyckoff's Market Rating: 7.0.
March silver futures have seen an upside breakout from bull flag pattern on the daily bar chart. The bulls’ next upside price objective is closing prices above solid technical resistance at $65.00. The next downside price objective for the bears is closing prices below solid support at $57.00. First resistance is seen at the overnight contract/record high of $62.14 and then at $63.00. Next support is seen at $60.00 and then at $59.00. Wyckoff's Market Rating: 9.5.
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