Gold price strengthens after FOMC minutes, a bit dovish

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(Kitco News) – Gold and silver prices are higher and reached daily highs Wednesday afternoon in US trade. The week’s US data point saw the FOMC meeting minutes lean slightly towards US monetary policy. December gold was up $5.70 to $1,745.50 and December silver was up $0.381 to $21.43.

The just-released minutes of the latest FOMC monetary policy meeting showed that FOMC members say they should soon slow the pace of interest rate hikes in the US. However, they also see a higher Fed funds rate than they previously expected. Some Fed officials worried that the Fed might tighten monetary policy more than necessary. As always, traders were watching the minutes to see if they contained any new clues about the future path and timing of the Fed’s monetary policy.

Most global stock markets were slightly higher overnight. US equity indices were higher in afternoon trading following the dovish FOMC minutes. The market remained uncertain mid-week as Covid-19 cases in China continue to rise and are crushing the world’s second largest economy. Newswire reports this morning quoted Chinese officials as saying they would further ease China’s monetary policies in an effort to produce more economic growth.



Major external markets see the US dollar index sharply lower today. Nymex crude oil prices are also sharply lower, trading at around $77.50 a barrel. The yield on the benchmark 10-year US Treasury note is currently around 3.71%.

The US markets are closed on Thursday for the Thanksgiving holiday.

Technically, gold futures bulls and bears are in a general short-term technical playing field. A fledgling price uptrend on the daily bar chart has been reversed. The bulls’ next upside price target is to produce a close above solid resistance at the November high of $1,791.80. The bears’ next short-term downside price target is to push futures prices below firm technical support at $1,675.00. The first resistance was seen at this week’s high of $1,755.00 and then $1,770.00. First support is seen at $1,725.00 and then today’s low of $1,719.00. Wyckoff Market Rating: 5.0.

24-hour live silver chart [ Kitco Inc. ]

Silver bulls have the slight overall technical edge in the short term. Prices are in a 2.5 month choppy uptrend on the daily bar chart. The next upside price target for silver bulls is to close prices above solid technical resistance at the November high of $22.38. The next downside price target for the bears is for prices to close below the solid support at $19.00. The first resistance is seen at $22.00 and then $22.38. The next support is seen at $21.00 and then this week’s low of $20.60. Wyckoff Market Rating: 5.5.

December NY copper closed up 80 points today at 362.25 cents. Prices closed near the mid-range. Copper bears have the overall short-term technical edge. A six-week uptrend on the daily bar chart has stalled. The next upside price target for copper bulls is to push and close prices above solid technical resistance at the November high of 396.00 cents. The bears’ next downside price target is for prices to close below firm technical support at 330.00 cents. The first resistance is seen at this week’s high of 366.90 cents and then at 370.00 cents. The first support is seen at this week’s low of 354.75 cents and then at 350.00 cents. Wyckoff Market Rating: 4.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee its accuracy. This article is for informational purposes only. It is not a solicitation to effect any exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no liability for loss and/or damage arising from the use of this publication.

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