Gold and silver react little to FOMC statement

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(Kitco News) Gold and silver futures prices were lower in the US afternoon on Wednesday, but well up from their previous lows. Metals are partly under pressure from a higher US dollar index on this day. Short-term futures traders were also exerting pressure based on the gold and silver charts mid-week, amid a lack of fresh and bullish news for metals recently. February gold futures were last down $ 5.40 to $ 1,845.10 and March Exex silver last fell $ 0.153 to $ 25.38 per ounce.

The two-day meeting of the Federal Reserve’s Open Market Committee (FOMC) that just concluded began on Tuesday morning and ended Wednesday afternoon with a statement that left US monetary policy unchanged, as expected. The statement said US economic growth has moderated in recent months and the pandemic still poses risks. Markets, including precious metals, reacted little to the news. Fed Chairman Powell’s press conference, due to begin shortly at the time of this writing, will be closely scrutinized. Powell has a habit of making unexpected remarks at his press conferences, which rocked the markets.

Global equity markets remained stable to mixed overnight. US stock indices are significantly lower in afternoon trading. If the stock indexes continue to sell this week, gold and silver could see a demand for safe haven. More and more market watchers believe that the US stock market has turned very foamy, with an economy teeming with easy money from the Federal Reserve.

Some traders and brokers may be saying that China is currently experiencing a severe food shortage. China recently made larger purchases of US grains, as part of a previous trade deal between the world’s two largest economies. In addition, some reports indicate that Covid-19 is making a resurgence in some places in China. All of the above could have an impact on China’s economic growth prospects. Of course, the secretive nature of the Chinese government makes anything of this nature difficult to confirm, but it needs to be watched more closely.

The main “foreign markets” are now seeing the US dollar index significantly higher. Meanwhile, Nymex crude oil futures prices are firmer and are trading around $ 53.00 per barrel. The yield on the benchmark 10-year US Treasury bill is 1.04%.

Technically, the bulls and lows in February gold futures are broadly on a technical par for the short term amid recent choppy trading. The next bull price target is to produce a close above the strong resistance at $ 1,900.00. Bears’ next short-term price drop target is to push futures prices under strong technical support to the January low of $ 1,800.80. First resistance is seen at today’s high of $ 1,851.50 followed by Tuesday’s high of $ 1,860.80. First support is seen at today’s low of $ 1,828.40 and then at $ 1,817.10. Wyckoff Market Rating: 5.0

March bulls and silver futures declines are back in broad technical ground in the near term. The next bullish price target for Silver Bulls is to close prices above strong technical resistance at the January high of $ 29.105 an ounce. The next lower price target for the bears is to close prices below solid support at the January low of $ 24.04. First resistance is seen at today’s high of $ 25.545 and then at this week’s high of $ 25.835. Next support is seen at $ 25.00 and then at the current low of $ 24.715. Wyckoff Market Rating: 5.0.

March NY copper closed down 600 points at 355.75 cents today. Prices closed closer to the session low today and hit a three week low. The Copper Bulls have the overall firm technical advantage in the short term but have faded a bit. An upward price trend on the daily bar chart was reversed recently. The next bullish price target for copper bulls is to push and close prices above strong technical resistance at the January high of 373.40 cents. The next lower price target for the bears is to close the price below strong technical support at 340.00 cents. First resistance is seen at 360.00 cents, then at today’s high of 362.80 cents. First support is seen at today’s low of 352.05 cents and then 350.00 cents. Wyckoff Market Rating: 7.0.