Gold price firms after FOMC minutes lean a bit dovish
Gold and silver prices are higher and hit daily highs in afternoon U.S. trading Wednesday. The U.S. data point of the week saw the FOMC meeting minutes tilt slightly dovish on U.S. 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 from the last FOMC monetary policy meeting showed FOMC members saying it would soon be appropriate to slow the pace of U.S. interest rate increases. However, they also see a higher terminal Fed funds rate than they had earlier expected. Some Fed officials were worried the Fed could be tightening monetary policy more than necessary. As always, traders were looking at the minutes to see if they contain any new clues on the future path and timing of Fed monetary policy.
Most global stock markets were slightly up overnight. U.S. stock indexes are higher in afternoon trading, following the dovish FOMC mintues. The marketplace remained tentative at mid-week as Covid-19 cases in China continue to rise and are crimping the world’s second-largest economy. Newswire reports this morning quoted Chinese officials as saying they will further ease China’s monetary policies in an effort to produce more economic growth.
Gold prices should be closer to $1,614 than $1,750 – Quant Insight
The key outside markets today see the U.S. dollar index sharply lower. Nymex crude oil prices are also sharply lower and trading around $77.50 a barrel. The yield on the benchmark U.S. 10-year Treasury note is presently around 3.71%.
U.S. markets are closed on Thursday for the Thanksgiving holiday.
Technically, the gold futures bulls and bears are on a level overall near-term technical playing field. A fledgling 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 near-term downside price objective is pushing 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 seen at $1,725.00 and then at today’s low of $1,719.00. Wyckoff's Market Rating: 5.0.
The silver bulls have the slight overall near-term technical advantage. Prices are in a choppy 2.5-month-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the November high of $22.38. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at $22.00 and then at $22.38. Next support is seen at $21.00 and then at this week’s low of $20.60. Wyckoff's Market Rating: 5.5.
December N.Y. copper closed up 80 points at 362.25 cents today. Prices closed near mid-range. The copper bears have the overall near-term technical advantage. A six-week-old uptrend on the daily bar chart has stalled out. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the November high of 396.00 cents. The next downside price objective for the bears is closing 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.
By Jim Wyckoff
For Kitco News