Gold price firms after FOMC minutes are leaning a bit moderately

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(Kitco News) — Gold and silver prices are higher, hitting daily highs during midday US trading on Wednesday. The week’s US data point saw FOMC meeting minutes easing slightly on US monetary policy. Gold in December was up $5.70 to $1,745.50 and silver in December was up $0.381 to $21.43.

The just-released minutes of the FOMC’s latest monetary policy meeting showed that FOMC members said it would soon be appropriate to slow the pace of US interest rate hikes. However, they are also seeing a higher terminal Fed funds rate than they previously expected. Some Fed officials feared that the Fed would tighten monetary policy more than necessary. As always, traders looked to the Minutes for new clues about the future path and timing of the Fed’s monetary policy.

Most global stock markets were slightly higher overnight. US stock indices are higher in midday trading, reflecting the soft FOMC currencies. Mid-week, the market remained hesitant as Covid-19 cases continue to rise in China and the world’s second-largest economy shrinks. Newswire reports this morning quoted Chinese officials as saying they will further ease China’s monetary policy in an effort to deliver more economic growth.



Today’s major external markets are seeing the US dollar index plummet. The price of Nymex crude oil is also sharply lower, trading around $77.50 a barrel. The yield on the benchmark US 10-year Treasury bill is currently around 3.71%.

US markets are closed on Thursday for Thanksgiving.

Technically, the bulls and bears of gold futures are on an even overall technical playing field in the near term. A fledgling price uptrend on the daily bar chart has been negated. Bulls next upside price target is to produce near solid resistance at the November high of $1,791.80. Bears’ next near-term downside price target is to push futures prices below solid technical support at $1,675.00. The first resistance is seen at this week’s high at $1,755.00 and then at $1,770.00. Initial support is seen at $1,725.00 and then at today’s low of $1,719.00. Wyckoff’s market rating: 5.0.

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

December NY copper closed 80 points today at 362.25 cents. Prices closed near the mid-range. The copper bears have the overall short-term technical advantage. A six-week-old upward trend on the daily bar chart has stalled. Copper Bulls next upside price target is to push and close prices above solid technical resistance at the November high of 396.00 cents. The next downside price target for the bears is to close prices below solid technical support at 330.00 cents. The first resistance is seen at this week’s high at 366.90 cents and then at 370.00 cents. Initial support is seen at this week’s low of 354.75 cents and then at 350.00 cents. Wyckoff’s 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 that the information provided is accurate; Neither Kitco Metals Inc. however, neither the author can guarantee such accuracy. This article is for informational purposes only. It is not an invitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no liability for any loss and/or damage resulting from the use of this publication.

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