It was a tale of two trades in gold and silver this week, pre and post Fed meeting.Gold touched a five-month low of $1,238.3 on Tuesday but recovered after the U.S. Federal Reserve on Wednesday raised interest rates for the third time this year. But markets in my view had priced in Wednesday’s rise and gold instead rose while the dollar and bond yields fell after the Fed kept its outlook of three rate rises next year unchanged and said U.S. tax cuts would not significantly spur growth. More than anything there were whispers some confirmed by Thursday night that the tax bill might be in peril due to some defections from Senate Republicans. While this is purely my opinion, I think that investor sentiment following the Fed announcement was friendlier for gold given that the Feds inflation expectations still have not been met, with the thought that this might give the Fed pause on three hikes in 2018. Add that a new Fed chair is starting in late January/February and more uncertainty is created. Therefore gold and silver pushed higher. February gold finished the week at 1257.1, up 8.70. March Silver closed the week at 16.06. For the week silver gained .24 cents. Having said all that today was quadruple witching for equities and all major U.S. indexes finished at all-time highs. Fear over a tax deal impasse in congress ended up being a sell the rumor event. Gold and silver finished the week well off the highs for the week but halted the weekly losing streak.
Technical swing numbers for next week come in for both gold and silver as follows. February gold has support down first at 1242.3. A close under and 1227.2 is next. Resistance is up at 1268.3. A close over and 1279.6 is the next level to the upside. For March Silver, support is down first at 1573.6. a close under and 1543.8 is next. Resistance is up at 1628.1. A close over and 1650.3 is next.
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