Gold, Silver Prices Push To New Daily Highs, Post-FOMC

(Kitco News) - Gold andsilver prices are solidly higher in afternoon U.S. trading Wednesday, on shortcovering and bargain hunting following recent selling pressure. Prices extendedalready-good gains after the FOMC statement was issued. Gold prices have comedown a bit from their highs, however. April Comex gold futures were last up $15.00an ounce at $1,327.10. May Comex silver was last up $0.335 at $16.525 an ounce.

Themajor U.S. economic data point of the week saw the Federal Reserve’s OpenMarket Committee (FOMC) raise interest rates by 0.25%, to a range of 1.5% to1.75. The rate hike was fully expected by the marketplace. The FOMC signaledthat three interest rate hikes will likely occur in 2018, but a total of fourcannot be ruled out. The FOMC statement did not suggest inflation is becoming aproblem. The Fed also thinks three interest rate increases are in the cards for2019 and two more in 2020-to then bring the Federal funds rate into a range of3.25% and 3.5%. Early readings on the FOMC statement are that the FOMC memberswere just a bit more hawkish on U.S. monetary policy than expected. But ideasare mixed on that matter.

TheU.S. stock market added to its daily gains following the FOMC statement. TheU.S. Treasury market weakened a bit, and the U.S. dollar index extended itsearlier losses to trade solidly down on the day.

Now,Federal Reserve Chairman Jerome Powell will soon hold his first pressconference, which will be closely scrutinized by the marketplace.

TheBank of England holds its monetary policy meeting on Thursday.

Theother key “outside markets” on Wednesday saw Nymex crude oil prices solidlyhigher and hit a six-week high. Oil prices are in an accelerating near-termuptrend on the daily chart. That’s also a bullish development for the preciousmetals markets.

Technically,Aprilgold futures bulls and bears are now back on a level overall near-termtechnical playing field. Prices are still in a four-week-old downtrend on thedaily bar chart, but now just barely. Gold bulls' next upside near-term pricebreakout objective is to produce a close above solid technical resistance atthe March high of $1,342.00. Bears' next near-term downside price breakoutobjective is pushing prices below solid technical support at $1,300.00. Firstresistance is seen at today’s high of $1,328.00 and then at last week’s high of$1,330.50. First support is seen at $1,309.90 and then at this week’s low of$1,306.60. Wyckoff's Market Rating: 5.0

May silver futures bears still have the overall near-term technical advantage.Prices are still in a five-week-old downtrend on the daily bar chart. Silverbulls' next upside price breakout objective is closing prices above solidtechnical resistance at the March high of $16.895 an ounce. The next downsideprice breakout objective for the bears is closing prices below solid support at$16.00. First resistance is seen at $16.69 and then at the March high of$16.895. Next support is seen at $16.25 and then at this week’s low of $16.10.Wyckoff's Market Rating: 3.0.

MayN.Y. copper closed up 315 points at 306.95 cents today. Prices closed nearerthe session high today on short covering after hitting a three-month low earlyon today. The copper bulls and bears are on a level overall near-term technicalplaying field. Prices are in a four-week-old downtrend on the daily bar chart.Copper bulls' next upside price objective is pushing and closing prices abovesolid technical resistance at 320.00 cents. The next downside price objectivefor the bears is closing prices below solid technical support at 300.00 cents.First resistance is seen at Tuesday’s high of 309.40 cents and then this week’shigh of at 311.55 cents. First support is seen at 305.00 cents and then attoday’s low of 301.50 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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