The FOMC met the last two days and just released their commentary showing an as expected quarter point raise to the fed funds rate. This was a much anticipated meeting as this was Chairman Powell’s first quarterly meeting as chair and first news conference. Because of long liquidation and profit taking in the USD, which was in the red prior to the meeting adjournment, Gold trended upward this morning prior to the end of the meeting and subsequently rallied. The other precious metals saw similar gains with Silver up over 2.5% for the day. While the rates were raised per expectations, Chairman Powell affirmed that 3 rate hikes were more likely this year remaining cautious on raising rates too fast adding support to metals.
April gold rose to settles at $1,321.50 a troy ounce, May silver futures settled up to $16.419 a troy ounce, April platinum futures rose to $950.60 a troy ounce, May copper futures settled down to $3.0585 per pound, and June Palladium futures dropped to $986.45 a troy ounce.
For April gold, we see near term resistance at $1,329.83 with longer term resistance at $1,338.17. With near term support at $1,311.33, and showing longer term support at $1,301.17.
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Michael Bullion, CAIA
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RISK DISCLOSURE: THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES AND OPTIONS TRADING. THIS REPORT IS A SOLICITATION FOR ENTERING A DERIVATIVES TRANSACTION AND ALL TRANSACTIONS INCLUDE A SUBSTANTIAL RISK OF LOSS. THE USE OF A STOP-LOSS ORDER MAY NOT NECESSARILY LIMIT YOUR LOSS TO THE INTENDED AMOUNT. WHILE CURRENT EVENTS, MARKET ANNOUNCEMENTS AND SEASONAL FACTORS ARE TYPICALLY BUILT INTO FUTURES PRICES, A MOVEMENT IN THE CASH MARKET WOULD NOT NECESSARILY MOVE IN TANDEM WITH THE RELATED FUTURES AND OPTIONS CONTRACTS.