Home Business Gold price rallies, post-FOMC, as USDX, U.S. bond yields sink

Gold price rallies, post-FOMC, as USDX, U.S. bond yields sink

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Welcome to Kitco News’ 2023 Outlook series. Uncertainty continues to dominate financial markets as central bank monetary policy pushes the global economy into recession to curb inflation. Stay tuned to Kitco News to learn from the experts on how to navigate the turbulent financial markets of 2023.

(Kikko News)- Money When silver priceA daily high was approaching in US trading on Wednesday afternoon following the widely anticipated slight rise in interest rates from the Federal Reserve. april gold It rose $15.30 to $1,960.40 and silver rose $0.199 to $24.03 in March.

This week’s US data point is the just concluded Federal Reserve Open Market Committee (FOMC) meeting. The FOMC raised the Fed’s rate range by 0.25%, as expected, following the 0.5% rate hike at the last meeting. The FOMC statement said that while US inflation has eased a bit, it is still too high, suggesting further interest rate hikes are on the way. A press conference by Fed Chairman Jerome Powell showed that the chairman is staying vigilant to stem the troubled price hikes. However, during his remarks, market mood improved markedly as the US stock index rose, the US dollar index plummeted, US Treasury yields fell, and gold and silver prices rose. Markets may have been relieved that Powell sounded less hawkish than his recent remarks. The European Central Bank and the Bank of England will hold their monetary policy meeting on Thursday.

Today’s ADP National Employment Report for January showed an increase of 106,000 workers, below the consensus forecast of an increase of 190,000. Gold prices rose slightly following the news. The ADP report is a precursor to his January’s more significant employment situation report, which was released by the Labor Department on Friday morning. The number of major non-farm payrolls in that report is projected to be up to 187,000 jobs.

In major external markets today, the US dollar index has fallen sharply to an eight-month low. Nymex crude futures prices have plummeted, trading around $76.75 a barrel. A surprising weekly rise in US liquid energy stocks in the latest reporting week has put pressure on today’s energy markets. Meanwhile, the benchmark 10-year US Treasury bond currently yields around 3.404%.

Technically, April gold futures bulls generally have a short-term technical advantage. An uptrend for the first time in three months appears on the daily chart. The next upside price target for the bulls is to make a close above the solid resistance at $2,000.00. The Bears’ next short-term downside price target is to push the futures price below the solid technical support of $1,900.00. The first resistance is seen at the January high of $1,966.50 and then at $1,975.00. The first support is at $1,950.00, followed by today’s low of $1,936.10. Wyckoff Market Rating: 8.0

24 Hour Live Silver Chart [ Kitco Inc. ]

March silver futures bulls have short-term technical advantage overall. However, trading has been choppy and flat for several weeks. The Silver Bulls’ next upside target is a close above the solid technical resistance of $24.775, the January high. The next downside target for the bears is a close below the solid support of $22.00. The first resistance is at last week’s high of $24.415, followed by $24.67. The next supports are today’s lows of $23.44 and this week’s lows of $23.05. Wyckoff Market Rating: 6.5.

NY Copper for March closed today, down 1,085 points at 411.85 cents. The price closed close to session lows and today he made a three-week low. The copper bulls have a solid overall technical advantage in the short term, albeit a bit weaker. His first uptrend in four months on the daily chart has stalled. The next upside price target for the copper bulls is to break above the January high of 435.50 cents solid technical resistance and push the price higher to a close. The next downside target for the bears is a close below solid technical support at 395.00 cents. First resistance is seen at 420.00 cents, followed by the week’s high of 424.90 cents. First support is at today’s low of 410.55 cents, followed by 405.00 cents. Wyckoff Market Rating: 7.0.

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

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