Gold price firms after FOMC minutes lean a little dove

Gold price firms after FOMC minutes lean a little dove

Gold price firms after FOMC minutes lean a little dove

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(Kitco News) – Gold and silver prices are higher and hit daily highs in U.S. afternoon trading on Wednesday. This week’s US data point saw the FOMC meeting minutes fall a bit flat on US monetary policy. December gold was last up $5.70 at $1,745.50 and December silver was up $0.381 at $21.43.

The just-released minutes of the last FOMC monetary policy meeting showed that FOMC members said it would soon be appropriate to slow the pace of US interest rate hikes. However, they also see a higher Fed terminal rate than they had previously expected. Some Fed officials were concerned that the Fed might tighten monetary policy more than necessary. As always, traders looked to the minutes to see if they contain any new clues about the future path and timing of the Fed’s monetary policy.

Most global stock markets rose slightly overnight. US stock indexes are higher in afternoon trade, following the dovish FOMC remarks. The market remained flat for now mid-week as Covid-19 cases in China continue to rise, putting pressure on the world’s second-largest economy. Newswire reports this morning quoted Chinese officials as saying they will further ease China’s monetary policy in an effort to produce more economic growth.



The main outside markets today see the US dollar index falling sharply. Nymex crude oil prices are also sharply lower and trade at around $77.50 a barrel. The yield on the US 10-year Treasury bond is currently around 3.71%.

US markets are closed on Thursday for the Thanksgiving holiday.

Live 24 hour gold chart [Kitco Inc.]

Technically, gold futures bulls and bears are on an even overall technical playing field in the short term. A new price uptrend on the daily bar chart has been negated. Bulls’ next upside price objective is to produce a close above solid resistance at the November high of $1,791.80. Bears’ next short-term downside price objective is to push futures prices below solid technical support at $1,675.00. First resistance is seen at this week’s high of $1,755.00 and then at $1,770.00. First support is $1,725.00 and then at today’s low of $1,719.00. Wyckoff’s Market Rating: 5.0.

Live 24 hour silver chart [ Kitco Inc. ]

The silver bulls have the slight overall technical advantage in the short term. Prices are in a choppy 2.5 month old uptrend on the daily bar chart. Silver Bull’s next upside price target is closing prices above solid technical resistance at the November top of $22.38. The next downside price target for the bears is to close prices below solid support at $19.00. First resistance is seen at $22.00 and then at $22.38. The next support is $21.00 and then this week’s low of $20.60. Wyckoff’s market rating: 5.5.

December NY copper closed up 80 points to 362.25 cents today. Prices closed near the mid-range. The copper bears have the overall technical advantage in the short term. A six-week-old uptrend on the daily bar chart has stalled. The Copper Bulls’ next upside price objective is to push and close prices above solid technical resistance at the November high of 396.00 cents. The next downside price target for the bears is to close prices below solid technical support at 330.00 cents. First resistance is seen at this week’s high of 366.90 cents and then at 370.00 cents. First support is seen at this week’s low of 354.75 cents and then at 350.00 cents. Wyckoff’s Market Rating: 4.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect the views of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not an invitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept responsibility for any loss and/or damage arising from the use of this publication.

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