Gold, Silver Weaker As Fed Rate Hike Taken In Stride

(Kitco News) - Gold andsilver prices are modestly lower in afternoon U.S. trading Wednesday and areseeing some pressure from a rebound in the U.S. dollar index today and oncontinued upbeat trader and investor risk attitudes. This afternoon's FOMCmeeting concluded with an interest rate hike, but it had little impact on themetals or other markets. December gold futures were last down $2.40 an ounce at$1,202.40. December Comex silver was last down $0.043 at $14.45 an ounce.

Themuch-anticipated conclusion of the two-day FOMC meeting that began Tuesdaymorning and ended just a while ago saw the Fed slightly raise U.S. interestrates, by 0.25%, as expected and marking the third rate rise this year. The Fedis on pace to raise rates another quarter-point this year and then three timesin 2019. The Fed said its long-term inflation prospects remain unchanged, andnon-problematic, despite the recent strong U.S. economic growth. Fed ChairmanJerome Powell will hold a press conference soon. As usual, the marketplace willparse the Fed's and Powell's wording for clues on the pace of future Fed ratehikes and the Fed's inflation expectations.

Focusin Europe is now on the new Italian government's economic plans to address itsfiscal and financial problems, which are required by European Union law. Manybelieve Italian lawmakers won't comply with EU rules on the matter.

Thekey outside markets today find the U.S. dollar index slightly higher on anupside correction from recent selling pressure. Meantime, November Nymex crude oilprices are lower and trading just below $72.00 a barrel. Supply worrieshave boosted oil recently. U.S. sanctions against Iran begin in early November,which will likely take much of that country's oil off the world market.President Trump has singled out Iran in front of the United Nations this weekas being a terrorist state that needs heavy economic sanctions. Trump alsocalled out the OPEC oil cartel for holding prices artificially high, sayingOPEC countries may not get financial or military support from the U.S.

Technically,the gold bears still have the overall near-term technical advantage. However,prices have been trading sideways for the past month, which begins to suggest amarket bottom is in place. Gold bulls' next upside near-term price breakoutobjective is to produce a close above solid technical resistance at $1,220.70.Bears' next near-term downside price breakout objective is pushing prices belowsolid technical support at the August low of $1,167.10. First resistance isseen at $1,210.00 and then at $1,215.80. First support is seen at last week'slow of $1,196.00 and then at the September low of $1,192.70. Wyckoff's MarketRating: 3.0

Thesilver bears still have the firm overall near-term technical advantage. Silverbulls' next upside price breakout objective is closing prices above solidtechnical resistance at $15.07 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at $13.50. Firstresistance is seen at this week's high of $14.595 and then at $14.75. Nextsupport is seen at this week's low of $14.22 and then at last week's low of$14.065. Wyckoff's Market Rating: 3.0.

DecemberN.Y. copper closed up 95 points at 283.45 cents today. Prices closed nearer thesession high today. The copper bears have the overall near-term technicaladvantage, but recent good gains suggest a market bottom is in place. Copperbulls' next upside price objective is pushing and closing prices above solidtechnical resistance at the 295.00 cents. The next downside price objective forthe bears is closing prices below solid technical support at the August low of 257.45cents. First resistance is seen at Tuesday's high of 284.80 cents and then atlast week's high of 287.10 cents. First support is seen at this week's low of278.90 cents and then at 275.00 cents. Wyckoff's Market Rating: 4.0.

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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