Gold and silver fall on profit-taking and USDX bounce

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(Kitco News) – Prayed prices are lower and silver is well below its daily high in US trade at noon on Thursday. Profit-taking by short-term futures traders comes in both metals after gold hit a nine-month high and silver a four-week high overnight. A rally in the US dollar index today after its hit on Wednesday is also a bearish daily item out of the market for precious metals. Still, both gold and silver are under firm near-term technical control. april gold was down $10.10 at $1,932.70 and March silver was up $0.036 at $23.65.

The market on Thursday was still digesting Wednesday afternoon’s FOMC statement and Fed Chairman Jerome Powell’s press conference. The Fed raised the range of the fed funds rate by 0.25%, as widely expected. However, Powell’s comments at his press conference led the market to believe that the Fed is close to ending its series of interest rate hikes. Powell said inflation is receding but needs to go back further. He mentioned the word “disinflation” as characteristic of the current economic conditions in the United States. Most agreed that, in the final assessment, Powell was not as aggressive as he had been in recent FOMC press conferences and left the door open for a Fed “pivot” sooner rather than later.

Today was the regular monetary policy meeting of the European Central Bank and the Bank of England, in which both central banks raised their main interest rates by 0.5%. The moves were not unexpected.

Technically, April gold futures prices hit a nine-month high earlier today and then reversed course to mark a bearish “outer day” on the daily bar chart. The bulls still have the overall solid near-term 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 $1,950.00 and then today’s high of $1,975.20. First support is seen at $1,925.00 and then this week’s low of $1,915.50. Wyckoff Market Rating: 8.0

March silver futures prices hit a four-week high earlier today. Silver bulls have the overall short-term technical advantage. However, trading has been choppy and sideways at the higher levels. 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 $24.00 and then last week’s high of $24.415. Next support is seen at this week’s low of $23.05 and then the January low of $22.845. Wyckoff Market Rating: 6.5.

NY copper for March closed 35 points lower at 410.75 cents today. Prices closed near 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 this week’s low of 410.25 cents and then at 405.00 cents. Wyckoff Market Rating: 7.0.