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(Kitco News) – Gold and silver prices are moderately higher, reaching early afternoon trading in the US early afternoon. Gold prices also reached a three-week high after the FOMC. The metals are lifted by a surprisingly slightly more subdued tone, which comes from the recently published FOMC statement. Now the markets are waiting for the press conference after FOMC from Fed chairman Jay Powell. April gold futures have recently rallied $ 6.50 an ounce to $ 1
The Federal Open Market Committee (FOMC) meeting, which began on Tuesday morning and ended a few moments ago, showed that the Fed has taken another step towards a simpler US monetary policy. The FOMC's statement states that the Fed would leave US interest rates unchanged and plans no further interest rate hikes this year. The Fed will also reduce its balance sheet outflow from May and close in October. From October, the Fed plans to reinvest mortgage-backed securities in US government bonds. The statement also states that the US labor market remains strong, but economic growth in the US has slowed somewhat, reflected in lower budget spending and lower corporate investment. FOMC members said that inflationary pressures have been reduced mainly because of lower energy prices. The US stock indices also made progress against the surprisingly cautious statement by the Fed. The US dollar index has hit a daily low, according to the Fed.
Risk appetite on the world market remains positive as there are no major geopolitical factors that drive world markets. This has been a limiting factor in the price hike on safe haven gold and silver markets.
The news reports say the US and China are approaching a formal trade agreement after the world's two largest economies have been engaged in a trade war for months. US Treasury Secretary Mnuchin and US Representative Lighthizer are reportedly traveling to China for high-level talks next week to try to conclude a deal. Some are now speculating that a deal will be made, but it will not include any major US claims such as the theft of intellectual property.
Key external markets see the US dollar index slightly firmer today on an upward correction after a three-week low on Tuesday. The greenback bulls have faded lately. Meanwhile, Nymex crude oil prices are slightly lower, trading just under $ 59.50 a barrel. Oil prices reached a four-month high on Tuesday.
Technically speaking, the gold futures bulls have the short-term technical advantage in April and are gaining some of their strength today. The next bullish bullish target is the short-term target of a breakout close to solid technical resistance at $ 1,330.00. The next short-term bearish Bears downside target is that prices will come under solid technical support with a low of $ 1,280.80 in March. The first resistance is seen at $ 1,320.00 and then at $ 1,325.00. The first support is seen at $ 1,305.00 and then at $ 1,300.00. Wyckoff's Market Appraisal: 6.5
The silver futures bulls are likely to have the short-term technical advantage and get fresh wind today. The silver bull's next bullish target is the closing price above solid technical resistance at $ 15.75 per ounce. The next downward price target for the bear is the closing price below the solid support at the March low of $ 14.985. The first resistance is at last week's high of $ 15.55 and then at $ 15.75. Next support is seen at $ 15.22 this week's low and then at last week's low of $ 15,135. The market valuation of Wyckoff: 6.5.
The copper of May N. Y. closed today with 10 points at 292.45 cents. Prices are closing closer to the session high today. The copper bulls have the overall technical advantage in the short term. The prices are given in a 10-week-old upward trend of the daily bar chart. The next price target for the copper bulls is to push the price above the solid technical resistance at a high of 297.75 cents in February and close. The next downward price target for the bears is the closing price below the solid technical support at 280.00 cents. The first resistance is seen at the high of the week of 294.40 cents and then at the high of the last week of 295.70 cents. First support is seen at 289.90 cents this week's low and then 2.87.45 cents in March. Wyckoff's market valuation: 6.5.
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