Gold Price Rises, Following FOMC, While USDX and US Bond Yields Plunge

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(Kitco News) – Prayed Y silver pricesThey are higher and near their daily highs in US trade on Wednesday afternoon, on the back of a slightly expected interest rate hike from the Federal Reserve that was widely expected. april gold was up $15.30 to $1,960.40 and March silver was up $0.199 to $24.03.

The US data point for the week is the Federal Reserve Open Market Committee (FOMC) meeting that just ended. The FOMC raised its fed funds rate range by 0.25%, as expected, following the 0.5% rate hike at the last meeting. The FOMC statement said US inflation has eased a bit but is still too high, suggesting more rate hikes are on the way. At Fed Chairman Jerome Powell’s press conference, the president kept an eye on him to crack down on problematic price inflation. However, during his remarks, the market saw his mood improve markedly as US stock indices rallied, US dollar index plunged, US Treasury yields fell and the prices of gold and silver rose. It could be that the market was relieved that Powell was not sounding even more aggressive than he had been in his recent comments. The European Central Bank and the Bank of England hold their monetary policy meetings on Thursday.

Today’s ADP national employment report for January showed an increase of 106,000 workers, which was below the consensus forecast of a rise to 190,000. Gold prices rose very slightly after the report. The ADP report is a precursor to the Labor Department’s most important January employment situation report on Friday morning. The key nonfarm payrolls number in that report is forecast to hit 187,000 jobs.

Key external markets today see the US dollar index considerably lower and hitting an eight month low. Nymex crude oil futures prices are down sharply and are trading around $76.75 per barrel. A surprising weekly rise in US liquid energy stocks in the last week of reporting pressured energy markets today. Meanwhile, the benchmark 10-year US Treasury yield currently sits at around 3.404%.

Technically, April gold futures bulls have a solid short-term overall technical advantage. There is a three-month uptrend on the daily bar chart. The Bulls next bullish price objective is to produce a close above solid resistance at $2,000.00. The bears’ next short-term downside price objective is to push futures prices below solid technical support at $1,900.00. First resistance is seen at the January high of $1966.50 and then $1975.00. First support is seen at $1,950.00 and then today’s low of $1,936.10. Wyckoff Market Rating: 8.0

March silver futures bulls have the overall short-term technical advantage. However, trading has been choppy and sideways for weeks. The Silver Bulls next bullish price objective is to close prices above solid technical resistance at the January high of $24.775. The next downside price objective for the bears is to close prices below the solid support at $22.00. First resistance is seen at last week’s high of $24.415 and then $24.67. Next support is seen at today’s low of $23.44 and then this week’s low of $23.05. Wyckoff Market Rating: 6.5.

March NY copper closed 1,085 points lower at 411.85 cents today. Prices closed closer to the session low and hit a three-week low today. Copper bulls have a firm overall short-term technical advantage, but they are fading a bit. A four-month uptrend on the daily bar chart has stalled. The next upside price objective for copper bulls is to push and close prices above solid technical resistance at the January high of 435.50 cents. The next downside price objective for the bears is to close prices below solid technical support at 395.00 cents. First resistance is seen at 420.00 cents and then this week’s high of 424.90 cents. First support is seen at today’s low of 410.55 cents and then 405.00 cents. Wyckoff Market Rating: 7.0.