Less Hawkish Fed Pushes Silver, Gold , Copper Higher

Following the Fed’s less hawkish announcement of its 25 bp interest rate hike on Wednesday, the price of silver surges upward. The Federal Open Market Committee Announcement noted “some additional policy firming,” and the dot plot median indicated one more hike. As a result, the Fed’s decision was largely anticipated.

Prior to the Fed event today, markets had a target rate of 4.36% for the end of the year. Volatile reactions to the announcement have decreased to 4.26%. US 2-year Treasury rates are at 4.77% after falling to a day low of 3.958% from a high of 4.259%. As a result, the US Dollar index, DXY, dropped from a high of 103.265 to a low of 102.065, and the bird flew away.

Rates are projected to be 5.1% by the end of 2023 and 4.3% by the end of 2024. Perhaps some extra policy firming is needed. The policy statement claims that American banks are strong and resilient, but events are anticipated to drag on growth. It is likely that the US economy will see tighter lending conditions, which will have an impact on hiring, inflation, and economic activity.

After the Federal Reserve’s 0.25% interest rate increase on Wednesday, which was mostly in line with market forecasts, gold and silver prices are sharply up in early afternoon US trading. At $1,967.77, April gold is last up $28.07. as of this writing. At $22.926, May silver was up $0.566.

The current banking crisis is likely to have a detrimental effect on the US economy, according to the FOMC statement, which also predicted one more rate hike this year. The market initially interprets the FOMC statement’s removal of language on ongoing interest rate hikes as a shift away from hawkishness in US monetary policy. Traders are now processing Fed Chairman Powell’s press conference as this article is being written.

Following a 15-month low on Monday, Nymex crude oil futures prices have increased and are currently trading at $70.50 per barrel. The current yield on the standard 10-year US Treasury note is 3.526%.

Technically speaking, bulls on April gold futures have a solid short-term advantage. On the daily bar chart, prices are in a nascent rise. The next price goal for the bulls is to close above strong resistance at this week’s high of $2,014.90.

Today, the price of May silver futures reached a seven-week high. In the short term, silver bulls now possess the technical edge. On the daily bar chart, prices are in a nascent rise. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at $21.00. First resistance is seen at today’s high of $23.025 and then at $23.25. Next support is seen at this week’s low of $22.29 and then at $22.00. Wyckoff’s Market Rating: 6.5.

May N.Y. copper closed up 455 points at 404.00 cents today. Prices closed nearer the session high today. The copper bears still have the slight overall near-term technical advantage.