(Kitco News) - Gold and silver futures prices are sharply higher in midday U.S. trading Wednesday. Gold prices scored a five-week high and silver a three-month high. The precious metals bulls are stoked by a reaffirmed easy money policy from the Federal Reserve and rising hopes of a new stimulus package for Americans. A meltdown in the U.S. dollar index is also working in favor of the precious metals market bulls. On this day the metals bulls also cast aside the better risk appetite in the marketplace. February gold futures were last up $32.90 at $1,892.00 and March Comex silver was last up $1.173 at $26.225 an ounce.
Global stock markets were mostly higher overnight. U.S. stock indexes are also higher at midday. Trader and investor risk sentiment remains keen late this week, following a friendly FOMC meeting that ended Wednesday and ideas that the U.S. Congress is moving very close to an agreement on a financial stimulus package for Americans. And hopes are higher this week that the U.K. and the European Union can come to agreement on a “smooth Brexit.”
The Federal Reserve’s Open Market Committee (FOMC) meeting that ended Wednesday afternoon saw the Fed leave U.S. interest rates unchanged, as expected. The FOMC statement also said there will likely be no change in U.S. interest rates until at least 2023. The Fed upgraded its U.S. economic growth and employment estimates. Meanwhile, the Fed will keep buying at least $120 billion of bonds per month until “substantial further progress has been made toward the committee’s maximum employment and price stability goals.” That marks a subtle change from previous Fed wording that said purchases will continue over the “coming months.” The marketplace deemed the FOMC results as upbeat and just a bit more dovish on monetary policy than expected.
In overnight news, the Euro zone consumer price index for November came in at down 0.3% from October and also down 0.3%, year-on-year. Major global economies are not experiencing any rising inflation concerns. If anything, there are more deflation concerns in the here and now. Still, the “reflation trade” is being embraced by those market watchers, including metals traders, that reckon all the record-breaking central bank and government stimulus measures this year will stoke problematic price inflation down the road. Rallies in many raw commodity markets Thursday are evidence of the reflation trade being ignited.
The U.S. dollar index is solidly lower today and hit another 2.5-year low. The other important outside market sees January Nymex crude oil futures prices higher, hitting a nine-month high, and trading around $48.25 a barrel. These two markets were also in a bullish daily posture for the precious metals. The yield on the benchmark 10-year U.S. Treasury note futures is currently trading around 0.93%.
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, February gold futures prices hit a four-week high today and have started a near-term price uptrend on the daily bar chart. The gold bulls have also regained the overall near-term technical advantage and have momentum. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at the November high of $1,973.30. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,850.00. First resistance is seen at today’s high of $1,902.00 and then at $1,925.00. First support is seen at $1,875.00 and then at today’s low of $1,865.90. Wyckoff's Market Rating: 6.0
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
March silver futures prices hit a three-month high today. Silver futures bulls have the overall near-term technical advantage amid a price uptrend in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $28.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $24.00. First resistance is seen at today’s high of $26.305 and then at $26.50. Next support is seen at $26.00 and then at today’s low of $25.335. Wyckoff's Market Rating: 6.5.
March N.Y. copper closed up 390 points at 359.80 cents today. Prices closed nearer the session high and closed at a 7.5-year high close today. The copper bulls have the strong overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 375.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 340.00 cents. First resistance is seen at the December high of 362.45 cents and then at 365.00 cents. First support is seen at this week’s low of 350.00 cents and then at 345.00 cents. Wyckoff's Market Rating: 8.5.
