(Kitco New) – Gold and silver prices are weaker in afternoon trading Wednesday but trading not far from levels seen just before the just-released report on U.S. monetary from the Federal Reserve. April gold was last down $4.50 at $2,035.30. March silver was last down $0.246 at $22.885.
This afternoon’s release of the minutes from the last FOMC meeting of the Federal Reserve showed members remained significantly concerned about rising inflation despite the Fed’s monetary policy tightening likely having peaked. The minutes showed FOMC members want to see more progress on reaching the Fed’s 2% annual inflation level before lowering interest rates. The marketplace is likely deeming the minutes slightly hawkish, but not unexpected. Recent warmer U.S. inflation reports already had the marketplace thinking the Fed will hold off on lower interest rates until the second half of the year, if even then.
U.S. stock index futures are weaker in early afternoon trading and showed no significant reaction to the FOMC minutes. It’s a busy week for U.S. corporate earnings reports.
The key outside markets today see the U.S. dollar index near steady. Nymex crude oil prices are firmer and trading around $77.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 4.317%.
Technically, April gold futures bears still have the slight overall near-term technical advantage. Prices are in a 2.5-month-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the February high of $2,083.20. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,975.10. First resistance is seen at today’s high of $2,043.50 and then at $2,050.00. First support is seen at this week’s low of $2,023.90 and then at last Friday’s low of $2,006.60. Wyckoff’s Market Rating: 4.5.
March silver futures bears still have the slight overall near-term technical advantage. However, a nine-week-old downtrend on the daily bar chart has been negated to suggest a market bottom is in place. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $24.50. The next downside price objective for the bears is closing prices below solid support at the February low of $21.975. First resistance is seen at today’s high of $23.22 and then at last week’s high of $23.56. Next support is seen at $22.50 and then at $22.25. Wyckoff’s Market Rating: 4.5.
March N.Y. copper closed up 65 points at 387.40 cents today. Prices closed nearer the session low today and hit a two-week high early on. The copper
bulls and bears are on a level overall near-term technical playing field but the bulls have momentum. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the January high of 394.70 cents. The next downside price objective for the bears is closing prices below solid technical support at the February low of 365.50 cents. First resistance is seen at today’s high of 390.85 cents and then at 394.70 cents. First support is seen at today’s low of 385.15 cents and then at this week’s low of 380.00 cents. Wyckoff’s Market Rating: 5.0.
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