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(Kitco News) – Gold and silver prices are moderately higher and hit daily highs in US trade Wednesday in the afternoon. Gold prices also hit a three-week high, post-FOMC. The metals are lifted by a surprisingly more sharp tone coming from the FOMC statement that was only released. Now the markets are waiting for the FOMC press conference from Fed Mayor Jay Powell. April gold futures were up to $ 6.50 an ounce of $ 1
The meeting of the Federal Open Market Committee (FOMC), which started Tuesday morning and ended momentarily, showed that the Fed has taken another strong step towards easier US monetary policy. The FOMC statement said the Fed would keep US interest rates unchanged and plan no more interest rate increases this year. The Fed will also decline its balance sheet maturity starting in May and ending in October. As of October, the Fed plans to reinvest mortgage-backed securities in US treasuries. In the statement, it is also said that the US labor market remains strong, but US economic growth has slowed somewhat, as evidenced by slower household costs and lower business investment. The FOMC members said inflationary pressures have been lagging behind, mainly due to lower energy prices. The US stock market indices have also made progress on the surprisingly poor Fed statement. The US Dollar Index sold and beat its daily Fed downturn.
Riskiness on the world market remains busy, as there are no major geopolitical conditions that move the world market. This has been a limiting factor for price developments in the gold and silver markets.
News reports say the US and China are moving closer to a formal trade deal after the two largest economies in the world fought a trade war for several months. Reports say US Treasury Secretary Mnuchin and US Trade Representative Lighthizer travel to China next week for high-level discussions to try to get a deal wrapped up. Some now speculate that an agreement is being reached, but it will not include important claims made by the United States, such as the theft of intellectual property.
The key outside of markets today sees the US dollar index somewhat firmer on an upside after hitting a three-week low Tuesday. The Greenback Bulls have recently faded. Meanwhile, the Nymex crude oil is modestly lower and trades just under $ 59.50 a barrel. Oil prices hit a four-month high Tuesday.
Technically, April gold futures bulls have the overall short-term technical advantage and gained some fresh power today. Gold Bull's next upside long-term price breach target is to produce a close-over solid technical resistance of $ 1,330.00. Bear's next long-term downturn in prices is pushing prices below solid technical support in March at $ 1,280.80. First Resistance is seen at $ 1,320.00 and then at $ 1,325.00. First support is set at $ 1,305.00 and then at $ 1,300.00. Wyckoff's Market Review: 6.5
Can silver futures bulls have the general short-term technical advantage and get some fresh power today. Silver silver's next upcoming price break target is the closing price over solid technical resistance of $ 15.75 per ounce. The next down to the price level for the bear is the final price under solid support in March low of $ 14,985. First resistance is seen last week high at $ 15.55 and then at $ 15.75. The next support is seen this week is low at $ 15.22 and then last week low at $ 15,135. Wyckoff's Market Evaluation: 6.5.
Mai N.Y. Copper closed 10 points at 292.45 cents today. Prices closed closer to the meeting high today. The copper bulls have the overall short-term technical advantage. The prices are in a 10 week old show on the daily line chart. The next upside price of copper trunks is to push and close prices over solid technical resistance in February high of 297.75 cents. The next downward price target for the bear is the final price under solid technical support of 280.00 cents. First resistance is seen in this week's height of 294.40 cents and then last week high of 295.70 cents. First aid is seen this week's low of 289.90 cents and then in March low at 2.87.45 cents. Wyckoff's Market Assessment: 6.5.
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