Gold and silver show little reaction to FOMC statement

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(Kitco News) Gold and silver futures prices are lower in Wednesday afternoon US trading, but well above their previous lows. Metals are partly pressured by a higher US dollar index on this day. Short-term futures traders were also exerting chart-based pressure on gold and silver midweek amid a lack of recent bullish news for metals recently. February gold futures fell $ 5.40 to $ 1,845.10 and the March Comex silver fell $ 0.153 to $ 25.38 an ounce.

The two-day meeting of the Federal Reserve’s Open Market Committee (FOMC), which just ended, began Tuesday morning and ended Wednesday afternoon with a statement that left US monetary policy unchanged, as expected. The statement said that US economic growth has been moderate in recent months and that the pandemic still poses risks. Markets, including precious metals, reacted little to the news. The Fed Powell President’s press conference, which will begin shortly after this text is drafted, will be closely examined. Powell has a history of making unexpected comments during his press conferences, which rocked the markets.

The global stock markets remained stable and mixed overnight. US stock indexes are solidly lower in afternoon trade. If stock indexes continue to decline this week, gold and silver could see a safe-haven demand surface. More and more market watchers are recognizing that the US stock market has become very sparkling, with an economy flooded with Federal Reserve easy money.

Possibly flying just below the market’s radar at the moment, some traders and brokers say China is experiencing a serious food shortage. China has been making larger purchases of US grain recently, as part of a previous trade agreement between the two largest economies in the world. In addition, there are some reports that Covid-19 is resurging in parts of China. All of the above can impact China’s economic growth prospects. Of course, the secretive nature of the Chinese government makes anything of this nature difficult to confirm, but it is worth keeping an eye on.

The main “foreign markets” today see the US dollar index solidly higher. Meanwhile, Nymex oil futures prices are firmer and are trading at around $ 53.00 a barrel. The yield on the 10-year US Treasury reference note is 1.04%.

Technically, the bulls and bears of the future gold of February are in a general level of short-term technical field amid recent hectic negotiations. The Bulls’ next bullish price target is to produce a close above the solid resistance at $ 1,900.00. The bears’ next short-term low price objective is to push future prices below solid technical support at the January low of $ 1,800.80. The first resistance is seen at today’s high of $ 1,851.50 and then at Tuesday’s high of $ 1,860.80. The first support is seen at today’s low of $ 1,828.40 and then at $ 1,817.10. Wyckoff market rating: 5.0

The bulls and bears of the March silver futures market are back in a general short-term technical level. The next bull bull price target is to close prices above solid technical resistance at the January high of $ 29,105 an ounce. The bears’ next downside price target is closing prices below solid support at the January low of $ 24.04. The first resistance is seen at today’s high of $ 25.545 and then at this week’s high of $ 25.835. The next support is seen at $ 25.00 and then at today’s low of $ 24.715. Wyckoff market rating: 5.0.

March copper in NY closed down 600 points at 355.75 cents today. Prices closed closer to the session’s low today and hit a three-week low. Copper bulls have the firm general short-term technical advantage, but have declined somewhat. A rising price trend on the daily bar chart has recently been negated. The next bullish price target for copper bulls is to push and close prices above solid technical resistance at the January high of 373.40 cents. The bears’ next downside price target is closing prices below solid technical support at 340.00 cents. The first resistance is seen at 360.00 cents and then at today’s high of 362.80 cents. The first support is seen at today’s low of 352.05 cents and then at 350.00 cents. Wyckoff’s market rating: 7.0.