“Solid Price Increases” Analyst Shares Next For Gold Price!

Gold and silver are seeing solid price gains post-FOMC. Gold and silver prices post good gains in early US trading on Thursday. Metal market traders today are benefiting from rising inflation expectations, as market history shows. A lower US dollar index is also favorable for metal bulls today. February gold was last seen at $1,789.30, up $24.80, and March Comex silver was at $22,265, up $0.715.

Gold price and conjuncture

cryptocoin.com As we reported, global stock markets rose mostly in overnight trading. U.S. stock indexes are pointing to solid higher openings, including the S&P 500 hitting a new record high overnight as the New York daily session kicks off. Traders and investors are still digesting the results of the US Federal Reserve FOMC meeting on Thursday. Somewhat surprisingly, the FOMC statement suggested that three rate hikes are likely in 2022 and that US inflation is rising, but will be pulled back in the coming months. The FOMC is reducing its monthly asset purchases, which will expire in March. The market had correctly expected a hawkish trend from the FOMC, but better clarity on the timing and actions of the Fed as evidenced by the rally in US stock indexes, stable bond yields and a weaker US dollar index has appeased traders in many markets.

Now the market awaits the results of the European Central Bank and Bank of England monetary policy meetings today. BOE announced that it increased the main interest rate by 15 basis points (0.15%). The pandemic does not seem to have fallen off the agenda. Europe has reinvigorated strict border controls. Key “external markets” today are witnessing Nymex crude oil prices higher and trading around $72.00 a barrel. The US dollar index is weakly lower today, but still not far below its recent high. Meanwhile, the yield on the US Treasury 10-year bond currently brings in 1,434. Another busy day for US economic data to be released on Thursday includes the weekly jobless claims report, the Philadelphia Fed jobs survey, new home construction, industrial production and capacity utilization, US flash services and manufacturing PMIs, and the Kansas City Fed manufacturing survey.

technical view

Technically, February futures gold bulls and bears are generally on the short-term technical playing field as trading has been sideways and volatile for two weeks. The bulls’ next upside price target is to produce a close above the solid resistance at $1,800.00. The bears’ next short-term bearish price target is pushing futures prices below solid technical support at this week’s low at $1,753.00. Initial resistance is seen at this week’s high at $1,792.80 followed by $1,800.00. Initial support is seen at the night’s low at $1,775.70 and then November’s low at $1,761.00.

March silver bears generally have a short-term technical advantage. Prices hit a 17-month low on Wednesday. Prices have been in a downward trend for four weeks. The silver bulls’ next upside price target is to close December futures prices above solid technical resistance at $23.00 an ounce. The next downside price target for the bears is to close prices below solid support at $21.00. Initial resistance is seen at this week’s high at $22.43, followed by $22,635. The next support is seen at nightly low at $21.93, followed by this week low at $21.41.

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