Gold Modestly Up; No Surprises From FOMC

(Kitco News) - Gold prices ended the U.S. day session modestly higher but off their highs Wednesday.An eroding U.S. dollar index continues to work in favor of the precious metalsmarket bulls. However, the USDX did move well off its daily lows in latetrading, which pulled the gold market down from its session highs. April Comex gold futures were last up $2.90 an ounce at $1,343.30. March Comex silver waslast up $0.202 at $17.26 an ounce.

TheFederal Open Market Committee (FOMC) meeting concluded Wednesday afternoon witha statement that made no changes in U.S. monetary policy. None were expected.The statement said the U.S. economy is gaining strength, to also suggest risinginflation. The market read the report as neutral to maybe just slightlyhawkish. Other markets saw little reaction to the FOMC statement. This was FedChair Janet Yellen’s last FOMC meeting.

Theother key “outside market” on Wednesday saw Nymex crude oil prices trade nearsteady around $64.50 a barrel.

Wednesdaymorning’s ADP National Employment Report showed a rise of 234,000 jobs inJanuary. Forecasts called for a rise of around 190,000. Gold prices backed offjust a bit on the news of a big miss to the upside on the report, but thenrecovered to set new session highs later in the morning.

Tradersare now awaiting Friday morning’s monthly U.S. employment situation report fromthe Labor Department. This is arguably the most important U.S. data point ofthe month. The key non-farm payrolls number consensus forecast comes in at up177,000.

Technically,Aprilgold futures prices closed the day session nearer the session low. Thegold bulls still have the overall near-term technical advantage, but need toshow fresh power soon to keep a six-week-old uptrend in place on the daily barchart. Gold bulls' next upside near-term price breakout objective is to producea close above solid technical resistance at the January high of $1,370.50.Bears' next near-term downside price breakout objective is pushing prices belowsolid technical support at $1,320.00. First resistance is seen at today’s highof $1,339.60 and then at $1,350.00. First support is seen at this week’s low of$1,337.50 and then at $1,330.00. Wyckoff's Market Rating: 6.5

Marchsilver futures prices closed nearer the session high today. The silver bullshave the slight overall near-term technical advantage. Silver bulls' nextupside price breakout objective is closing prices above solid technicalresistance at $18.00 an ounce. The next downside price breakout objective forthe bears is closing prices below solid support at the January low of $16.735.First resistance is seen at today’s high of $17.375 and then at this week’shigh of $17.47. Next support is seen at this week’s low of $17.04 and then at$17.00. Wyckoff's Market Rating: 5.5.

March N.Y. copper closed up 120 points at 320.10 cents today. Prices closed nearmid-range. The copper bulls have the overall near-term technical advantage.Copper bulls' next upside price objective is pushing and closing prices abovesolid technical resistance at the December high of 332.20 cents. The nextdownside price objective for the bears is closing prices below solid technicalsupport at the January low of 310.80 cents. First resistance is seen at thisweek’s high of 323.55 cents and then at 325.00 cents. First support is seen atthis week’s low of 315.20 cents and then at 312.50 cents. Wyckoff's MarketRating: 6.5.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@kitco.comwww.kitco.com 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 accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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