Gold, silver hold near steady following as-expected FOMC statement

(Kitco News) - Gold and silver prices are still trading not far from unchanged in late U.S. futures trading Wednesday. Silver prices did hit a five-week low overnight, following Tuesday’s beat-down. Focus at mid-week has turned away from the coronavirus outbreak and to other matters potentially impacting markets, including this afternoon’s conclusion of the FOMC meeting. February gold futures were last down $0.60 an ounce at 1,569.20. March Comex silver prices were last up $0.012 at $17.465 an ounce.

The just-released Federal Reserve Open Market Committee (FOMC) statement saw no change in U.S. monetary policy, as expected. The statement said the U.S. economy and labor market are growing moderately amid appropriate monetary policy and amid non-problematic inflation. The statement said the Fed will continue to monitor global developments, but did not specify what those developments might be. Fed watchers will be interested to see if Fed Chairman Powell at his press conference addresses very short-term credit funding for banks. That rate in past months became unstable, causing overnight lending rates to briefly spike.

While the coronavirus outbreak is still not at all contained, the marketplace at this point is deeming the event as fully factored into market prices. That perception could change. Traders and investors are turning their attention to other matters.

The key outside markets today see crude oil prices lower and trading around $53.15 a barrel. Meantime, the U.S. dollar index is slightly higher and is near this week’s two-month high.

Technically, February gold futures prices closed nearer the session high today. The bulls still have the overall near-term technical advantage as a 2.5-month-old price uptrend is in place on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the January high of $1,613.30. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,550.00. First resistance is seen at today’s high of $1,573.90 and then at Tuesday’s high of $1,582.20. First support is seen at today’s low of $1,562.00 and then at 1,550.00. Wyckoff's Market Rating: 6.5

March silver futures prices closed near the session high today and hit a five-week low early on. The silver bears have the overall near-term technical advantage as a downtrend is in place on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is seen at $17.75 and then at $18.00. Next support is seen at today’s low of $17.28 and then at $17.00. Wyckoff's Market Rating: 4.0.

March N.Y. copper closed down 240 points at 255.50 cents today. Prices closed near the session low and hit another 3.5-month low today. The copper bears have the solid overall near-term technical advantage amid a steep price downdraft occurring. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 270.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the September low of 249.35 cents. First resistance is seen at 257.50 cents and then at 260.00 cents. First support is seen at 255.00 cents and then at 252.50 cents. Wyckoff's Market Rating: 2.5.

By Jim Wyckoff

For Kitco News

 jwyckoff@kitco.com