Gold prices on a surprisingly dovish statement from the FOMC



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(Kitco News) – Gold and silver prices are slightly higher and hit daily highs on Wednesday early in the afternoon in the United States. The price of gold has also hit a three-week high, post-FOMC. The metals are raised by a surprisingly more dovish tone derived from the FOMC statement that has just been released. At present, markets are waiting for Fed Chairman Jay Powell's post-FOMC press conference. Gold futures for the month of April were up $ 6.50 an ounce at $ 1,313.10. In May, Comex 's money was up $ 0.108 to $ 15.475 an ounce.

The Federal Open Market Committee (FOMC) meeting, which began on Tuesday morning and ended a few moments ago, showed that the Fed has yet taken a decisive step towards easing monetary policy in the United States. United. In its statement, the FOMC said the Fed would maintain its US interest rates and no longer expects rate hikes this year. The Fed will also reduce its balance sheet from May to finish in October. Starting in October, the Fed is considering reinvesting mortgage-backed securities in US Treasuries. The statement also said that the US labor market remains strong, but that US economic growth has slowed somewhat, as evidenced by the slowdown in household spending and the reduction of business investment. FOMC members said inflationary pressures eased, mainly due to lower energy prices. US stock indexes also rose against the Fed's surprisingly dovish statement. The US dollar index has sold and hit its daily lows at Fed news.

The risk appetite in the global market remains optimistic, as no major geopolitical issue concerns global markets. This has been a compelling factor for price increases in the gold and silver safe haven markets.

Kitco Daily Summary

According to reports, the United States and China are getting closer to a formal trade agreement after the world's two largest economies have waged a trade war for months. According to reports, US Treasury Secretary Mnuchin and US Trade Representative Lighthizer will travel to China next week for high-level talks to try to reach an agreement. Some are now speculating on the possibility of reaching an agreement, but it will not understand the important demands made by the United States, such as the theft of intellectual property.

Major external markets are now seeing the US dollar index slightly stronger after a bullish correction after hitting a three-week low on Tuesday. The bulls of the bank note have disappeared recently. Meanwhile, Nymex crude oil prices are slightly lower and are trading just below $ 59.50 per barrel. Oil prices hit a four-month high on Tuesday.

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Technically, the bulls on April gold have the general technical advantage in the short term and have gained new strength today. The Gold Bulls' next short-term bullish price target is to produce near-solid resistance at $ 1,330.00. Bears' next short-term price reduction target pushes prices under strong technical support to a low of $ 1,280.80 in March. The first resistance is seen at $ 1,320.00, then at $ 1,325.00. The first support is seen at $ 1,305.00, then at $ 1,300.00. Wyckoff's Market Rating: 6.5

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May, the silver futures have the overall short term technical advantage and have gained strength today. The next bullish price target of the Silver Bulls is to close the closing prices above a strong technical resistance at 15.75 dollars an ounce. The next downside price target for the bears is the lower than solid support low of $ 14,985 in March. The first resistance is observed at the height of last week, at 15.55 dollars and 15.75 dollars. The next support is observed at the bottom of the week, at $ 15.22, then at the low of last week, at $ 15.135. Wyckoff Market Estimate: 6.5.

May The yen closed up 10 points to 292.45 cents today. Prices have moved closer to the high of the session today. Copper bulls have the overall technical advantage in the short term. Prices are in a bullish trend of 10 weeks on the daily bar chart. The Copper Bulls' next bullish price target is pushing and closing prices outstrip the strong technical resistance at the February high of 297.75 cents. The next downside target for bears is the lower closing price at strong technical support at 280.00 cents. The first resistance is observed at this week's high at 294.40 cents, then at the high of last week at 295.70 cents. The first support is observed at this week's low at 289.90 cents, then at the low of March, at 2.87.45 cents. Wyckoff Market Estimate: 6.5.

Warning: The opinions expressed in this article are those of the author and may not reflect those of the author. Kitco Metals Inc. The author has endeavored to ensure the accuracy of the information provided. However, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes. This is not a solicitation to exchange merchandise, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept liability for losses and / or damage resulting from the use of this publication.


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