Gold, Silver Prices Push To New Daily Highs, Post-FOMC

(Kitco News) - Gold and silver prices are solidly higher in afternoon U.S. trading Wednesday, on short covering and bargain hunting following recent selling pressure. Prices extended already-good gains after the FOMC statement was issued. Gold prices have come down a bit from their highs, however. April Comex gold futures were last up $15.00 an ounce at $1,327.10. May Comex silver was last up $0.335 at $16.525 an ounce.

The major U.S. economic data point of the week saw the Federal Reserve’s Open Market Committee (FOMC) raise interest rates by 0.25%, to a range of 1.5% to 1.75. The rate hike was fully expected by the marketplace. The FOMC signaled that three interest rate hikes will likely occur in 2018, but a total of four cannot be ruled out. The FOMC statement did not suggest inflation is becoming a problem. The Fed also thinks three interest rate increases are in the cards for 2019 and two more in 2020—to then bring the Federal funds rate into a range of 3.25% and 3.5%. Early readings on the FOMC statement are that the FOMC members were just a bit more hawkish on U.S. monetary policy than expected. But ideas are mixed on that matter.

The U.S. stock market added to its daily gains following the FOMC statement. The U.S. Treasury market weakened a bit, and the U.S. dollar index extended its earlier losses to trade solidly down on the day.

Now, Federal Reserve Chairman Jerome Powell will soon hold his first press conference, which will be closely scrutinized by the marketplace.

The Bank of England holds its monetary policy meeting on Thursday.

The other key “outside markets” on Wednesday saw Nymex crude oil prices solidly higher and hit a six-week high. Oil prices are in an accelerating near-term uptrend on the daily chart. That’s also a bullish development for the precious metals markets.

Technically, April gold futures bulls and bears are now back on a level overall near-term technical playing field. Prices are still in a four-week-old downtrend on the daily bar chart, but now just barely. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the March high of $1,342.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00. First resistance is seen at today’s high of $1,328.00 and then at last week’s high of $1,330.50. First support is seen at $1,309.90 and then at this week’s low of $1,306.60. Wyckoff's Market Rating: 5.0

May silver futures bears still have the overall near-term technical advantage. Prices are still in a five-week-old downtrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the March high of $16.895 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at $16.69 and then at the March high of $16.895. Next support is seen at $16.25 and then at this week’s low of $16.10. Wyckoff's Market Rating: 3.0.

May N.Y. copper closed up 315 points at 306.95 cents today. Prices closed nearer the session high today on short covering after hitting a three-month low early on today. The copper bulls and bears are on a level overall near-term technical playing field. Prices are in a four-week-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 320.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 300.00 cents. First resistance is seen at Tuesday’s high of 309.40 cents and then this week’s high of at 311.55 cents. First support is seen at 305.00 cents and then at today’s low of 301.50 cents. Wyckoff's Market Rating: 5.0.