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Gold prices weaker than the Federal Reserve not so easy



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(Kitco News) – Gold and silver prices have weakened in the afternoon of US trade. This is due to the recently published FOMC statement, which did not have as accommodative an impact on US monetary policy as many had expected. The December Gold Futures recently traded at $ 1,510.50 per ounce. The silver price of Comex in December has recently fallen by 0.27 USD to 1

7.88 USD per ounce.

At the major US economic event this week, the Federal Reserve's Open Market Committee (FOMC) cut US Fed funds by 0.25% to 1.75% to 2%. The move was expected by the market. However, the FOMC members were divided on the way and voted 7 to 3 for the cut. Seven out of 17 FOMC members expect only one more rate cut this year. The FOMC statement also states that the US economy continues to grow, but the global economic outlook remains uncertain. The market, despite the rate cut, considered the FOMC statement not as easy for US monetary policy as many had expected. The US dollar index rebounded moderately as a result of the rate cut, while the US stock market experienced some selling pressure.

By midweek, the market was less worried after the terrorist attack on Saudi oil than at the beginning of this week's installations. However, traders and investors wonder when "the next shoe will fall" in this matter.

After a rise in very short-term lending rates on Tuesday, overnight rates returned to their normal levels on Wednesday after the Federal Reserve injected liquidity into the financial system. While some traders and institutions were affected by the matter, the overall market was not affected. Nevertheless, some market observers are wondering if this development has more important and possibly worse implications for the future.

Nymex crude oil prices are lower and trade at around $ 58 a barrel. According to mid-week reports, the damaged Saudi oil facilities will be up and running much sooner than expected – by the end of this month. Live 24 Hour Gold Chart Technically, December gold futures bulls still have the solid short-term overall technical advantage and maintain a 3.5-month-old uptrend on the daily bar chart. However, the bulls will soon have to show new strength to keep the upward trend of the prices alive. The gold bull's next near-term upside target is to beat above the solid technical resistance closing price at the September high of $ 1,566.20. Bears' next short-term downside goal is to push prices below solid support at $ 1,485.00. First resistance is high at $ 1,519.70 this week and then at $ 1,525.00 thereafter. First support is seen at $ 1,500.00 and then at the September low of $ 1,492.10. Wyckoff's Market Rating: 7.0

  24-Hour Live Silver Chart [ Kitco Inc. ]

Silver futures bulls in December have the short-term overall technical advantage. A 3.5-month uptrend is still present in the daily bar graph. Silver Bulls next price target is the closing price above the solid technical resistance at $ 19.00 an ounce. The next downside target for the bear is the closing price, with solid support at $ 17.00. First resistance is seen at $ 18.17 this week's high and then at last week's high of $ 18.555. Next support is seen at $ 17.65 today and then at $ 17.47 last week's low. Wyckoff's market valuation: 6.5.

Copper today traded at 130 points at 261.40 cents. The courses closed today close to the session low. Overall, the copper bears have the short-term technical advantage. Recent gains, however, indicate that this market has bottomed out. The next price target of the copper bulls is to push prices down over the solid technical resistance at 275.00 cents and close. The next downward price target for the bears is to close prices below solid technical support at the September low of 248.20 cents. The first resistance is 264.75 cents on Tuesday's high and 268 cents later. First support is recorded at today's low of 260.35 cents and then last week's low of 259.00 cents. Wyckoff's market valuation: 3.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect the views 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 such accuracy. This article is for informational purposes only. It is not a request to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article assume no liability for any loss or damage arising out of the use of this publication.


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