Market analyst Jim Wyckoff says gold and silver prices have made a good recovery from the selling pressure seen before the conclusion of the FOMC meeting on Wednesday afternoon. It seems that metals traders were preparing for a hawkish FOMC statement and tones from Fed Chairman Jerome Powell. However, after taking the facts into account, the Fed may not be as hawkish to US monetary policy as many expected. He also assesses that the results of the FOMC meeting appear to be a classic case of “sell the rumor, buy the truth” from short-term futures traders.
Was Jerome Powell’s speech “dove” or “hawk”?
The market is still digesting the FOMC meeting, which ended Wednesday afternoon. cryptocoin.com As you can follow in its news, the Fed announced that it reduced its monthly bond purchases as expected. In addition, tapering is expected to end next summer. The FOMC statement or Fed Chairman Jerome Powell’s press conference did not come as a big surprise to the market. The Fed Chairman suggested that U.S. interest rate hikes do not have to come after the tapering winds subside. The analyst thinks this is somewhat dovish and may have helped push gold prices down from Wednesday’s lows.
The Bank of England had its regular monetary policy meeting on Thursday. The BOE did not change its monetary policy, but recently implied that monetary policy will also begin to tighten due to inflationary pressures. Speaking of inflation, the eurozone is getting hotter. The region’s producer price index for September increased by 2.7% compared to August and increased by 16.0% year-on-year.
US economic data released today includes the weekly jobless claims report, Challenger layoffs report, international trade report, preliminary productivity and costs, global services PMI and monthly US chain store sales index. Meanwhile, traders await Friday’s key US employment status report for October. The core nonfarm payrolls component of this report is expected to increase by 450,000 compared to the 194,000 increase in the September report.
Gold and silver technical analysis
Technically speaking, December gold bulls have lost their short-term technical advantage in general, market analyst Jim Wyckoff notes, rejecting a four-week uptrend on the daily chart. The bulls’ next upside price target is to produce a close above the solid resistance at the October high of $1,815.50. The bears’ next short-term bearish price target is to push futures prices below solid technical support at $1,721.10 September’s low, noting the following technical levels:
Initial resistance is seen at Wednesday’s high at $1,789.30 followed by this week’s high at $1,797.80. Initial support is seen at today’s low at $1,769.30 followed by this week’s low at $1,758.50.
Analyst Jim Wyckoff notes that silver bears generally have a short-term technical advantage, with a two-week downtrend on the daily bar chart. According to the analyst, the next upside price target for silver bulls is to close December futures prices above the solid technical resistance at $25.00. The analyst says the next downside price target for the bears is to close prices below solid support at $22.50, pointing to the following technical levels:
Initial resistance is seen at $24.00 followed by this week’s high at $24,175. The next support is seen at today’s low at $23,485 followed by this week’s low at $23,045.
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