Gold, silver see solid price rebounds from Wednesday's sell offs

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(Kitco News) - Gold and silver prices havemade good rebounds from selling pressure seen Wednesday, before the afternoonFOMC meeting conclusion. It appears metals traders were preparing for a hawkishFOMC statement and tone from Fed Chairman Jerome Powell, but then after thefact reckoned the Fed may not be leaning as hawkish on U.S. monetary policy asmany expected. Also, the FOMC meeting's results appear to be a classic case of "sellthe rumor, buy the fact" from the shorter-term futures traders. December goldwas last up $21.20 at $1,785.00 and December Comex silver was last up $0.634 at$23.865 an ounce.

Themarket place is still digesting the FOMC meeting that ended Wednesday afternoon.The Fed announced its tapering of monthly bond buying, as expected. It's alsoexpected the tapering will wind down next summer. There were no big surprisesin the FOMC statement or Fed Chair Powell's press conference, which suggestedthe marketplace had pretty well dialed in the outcome. Powell did suggest thatU.S. interest rate hikes do not necessarily have to come after tapering windsdown--and that leaned a little dovish and may have helped lift gold prices offtheir daily lows Wednesday.

Ontap Thursday is the regular monetary policy meeting of the Bank of England. TheBOE left its monetary policy unchanged but has hinted recently that its monetarypolicy will also start to tighten due to inflationary pressures.

Speakingof inflation, it's running hotter in the Euro zone. The zone's Septemberproducer priced index was reported up 2.7% from August and up a whopping 16.0%,year-on-year.

Globalstock markets were mixed to mostly firmer in overnight trading. The U.S. stock indexesare pointed to mixed openings when the New York day session begins. The U.S.indexes hit record highs overnight.

Tradersare awaiting Friday's important U.S. employment situation report for October. Thekey non-farm payrolls component of that report is expected to rise 450,000 comparedto a rise of 194,000 in the September report.

Thekey outside markets today see the U.S. dollar index solidly higher. Nymex crudeoil prices are higher and trading around $82.40 a barrel. Meantime, the 10-yearU.S. Treasury note yield is presently fetching 1.574%.

U.S.economic data due for release Thursday includes the weekly jobless claimsreport, the Challenger job-cuts report, the international trade report, preliminaryproductivity and costs, the global services PMI, and the monthly U.S. chain storesales index.

Technically,December gold futures bulls have lost their slight overall near-term technicaladvantage. A four-week-old uptrend on the daily chart has been negated. Bulls'next upside price objective is to produce a close above solid resistance at theOctober high of $1,815.50. Bears' next near-term downside price objective is pushingfutures prices below solid technical support at the September low of $1,721.10.First resistance is seen at Wednesday's high of $1,789.30 and then at this week'shigh of $1,797.80. First support is seen at today's low of $1.769.30 and thenat this week's low of $1,758.50. Wyckoff's Market Rating: 5.0

The silver bears have the slight overall near-term technicaladvantage. A two-week-old downtrend is in place on the daily bar chart. Silver bulls'next upside price objective is closing December futures prices above solid technicalresistance at $25.00 an ounce. The next downside price objective for the bears isclosing prices below solid support at $22.50. First resistance is seen at $24.00and then at this week's high of $24.175. Next support is seen at today's low of$23.485 and then at this week's low of $23.045. Wyckoff's Market Rating: 4.5.

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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