(Kitco News) – Gold and silver prices are posting decent corrective advances in early-afternoon U.S. trading Wednesday, following the just-released FOMC statement from the Federal Reserve that contained no big surprises to move the markets. June gold was last up $13.00 at $2,315.70. July silver was last up $0.231 at $26.88.
The highly anticipated Federal Reserve Open Market Committee (FOMC) meeting ended this afternoon with a statement, which left U.S. interest rates unchanged, as expected. The statement also said there has been a “lack of further progress” in recent months toward its inflation target of 2% annually. The statement said the Fed is “strongly committed” to returning inflation to 2%, adding that there will be no rate cuts until that time. Those are hawkish terms, but nothing the marketplace did not expect. Thus, the gold and silver markets bulls are seemingly breathing a sigh of relief the statement was not even more hawkish.
Now traders and investors are awaiting the press conference from Fed Chair Jerome Powell. Powell’s presser will be very closely scrutinized by the marketplace. Recent warmer U.S. inflation data has prompted most traders and analysts to dial back their timelines on any interest rate cuts from the Fed, if they come at all this year. There is a small camp of Fed watchers that think the next interest rate move by the Fed will be to hike. Most expect Powell to remain hawkish on U.S. monetary policy in his remarks today. Markets could become more active during Powell’s remarks. A Wall Street Journal headline today reads: “Fed has patience to let high rates work.”
On Friday morning comes the April U.S. jobs report from the Labor Department. The key non-farm jobs component of the jobs report is expected to show a rise of 240,000, following the March report showing a rise of 303,000. Today’s ADP national employment report for April showed a rise of 192,000 jobs, compared to expectations for a rise of 183,000.
The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are sharply lower, hit a six-week low and are trading around $79.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is fetching around 4.65%.
Technically, June gold futures prices hit another three-week low early on today. The bulls have the overall near-term technical advantage but they are fading. A 2.5-month-old uptrend on the daily bar chart has been negated and prices are starting to trend lower. Bulls’ next upside price objective is to produce a close above solid resistance at $2,364.40. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,200.00. First resistance is seen at today’s high of $2,321.50 and then at $2,350.00. First support is seen at today’s low of $2,291.70 and then at $2,275.00. Wyckoff’s Market Rating: 6.5.
July silver futures prices hit a four-week low Tuesday. The silver bulls have the slight overall near-term technical advantage but are fading. A two-month-old price uptrend on the daily bar chart has been negated and a downtrend line is in place. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $28.00. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at $27.00 and then at $27.50. Next support is seen at $26.50 and then at $26.25. Wyckoff’s Market Rating: 5.5
July N.Y. copper closed down 125 points at 455.20 cents today. Prices closed nearer the session high today. The copper bulls have the solid overall near-term technical advantage. Prices are in a 2.5-month-old uptrend on the daily bar chart. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 475.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 430.00 cents. First resistance is seen at 460.00 cents and then at 465.00 cents. First support is seen at 450.00 cents and then at 445.00 cents. Wyckoff’s Market Rating: 7.5
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