Gold, Silver Prices Push Higher On Non-Hawkish FOMC Statement

(Kitco News) - Gold and silver prices moved moderately higher in the wake of a somewhat dovish FOMCstatement from the Federal Reserve Wednesday afternoon. The Fed officialssignaled they are not worried about inflationary price pressures becomingproblematic. Such suggests the U.S. central bank won't become too aggressive onraising interest rates. June Comex gold futures were last up $4.20 an ounce at$1,311.40. July Comex silver was last up $0.363 at $16.485 an ounce.

Thekey U.S. markets event Wednesday is the Federal Reserve's Open Market Committee(FOMC) meeting that just ended with a statement. No change in U.S. interestrates was announced, as expected. On the inflation front, FOMC members said theyexpect U.S. inflation to be around 2.0% on an annual basis, which is rightwhere the Fed wants it.

OnMonday the U.S. Commerce Department issued a report saying overall U.S. priceinflation, via personal consumption expenditures, has reached the Fed's goal of2.0% annually. This latest statement implies two more interest rate increasesthis year, with the first one being in June.

Anotherimportant U.S. data point today was the ADP national employment report forApril, which showed a rise of 204,000. The number was forecast to be up 190,000jobs. The gold market moved little after the release of this report.

AU.S. high-level trade delegation travels to China Thursday to try to avert atrade war between the world's two largest economies.

OnFriday is the U.S. employment report from the Labor Department-arguably themost important U.S. data point of the month.

Theoutside markets today saw the U.S. dollar index higher and hitting another4.5-month high. Meantime, Nymex crude oil prices were slightly up and tradingaround $67.50 a barrel.

Technically,the gold bulls and bears are on a level overall near-term technical playingfield, but the bears have momentum on their side. A close below majorpsychological support at $1,300.00 would open the door to a larger leg down inprices in the near term. Gold bulls' next upside near-term price breakoutobjective is to produce a close above solid technical resistance at last week'shigh of $1,337.60. Bears' next near-term downside price breakout objective ispushing prices below solid technical support at $1,300.00. First resistance isseen at today's high of $1,312.50 and then at Tuesday's high of $1,317.40.First support is seen at $1,300.00 and then at $1,290.00. Wyckoff's MarketRating: 5.0

Thesilver bears still have the overall near-term technical advantage. Silverbulls' next upside price breakout objective is closing prices above solidtechnical resistance at $17.00 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at the Decemberlow of $15.805. First resistance is seen at today's high of $16.47 and then at$16.58. Next support is seen at today's low of $16.175 and then at this week'slow of $16.07. Wyckoff's Market Rating: 3.0.

JulyN.Y. copper closed up 300 points at 306.70 cents today. Prices closed nearmid-range today. The copper bulls and bears are on a level overall near-termtechnical playing field. Copper bulls' next upside price objective is pushingand closing prices above solid technical resistance at the April high of 321.80cents. The next downside price objective for the bears is closing prices belowsolid technical support at the March low of 295.85 cents. First resistance isseen at today's high of 308.80 cents and then at 310.00 cents. First support istoday's low of 304.75 cents and then at this week's low of 301.95 cents.Wyckoff's Market Rating: 5.0.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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