Gold, silver see solid price rebounds from Wednesday’s sell offs

(Kitco News, Thurs.  November. 4th, 2021) – Gold and silver prices have made good rebounds from selling pressure seen Wednesday, before the afternoon FOMC meeting conclusion. It appears metals traders were preparing for a hawkish FOMC statement and tone from Fed Chairman Jerome Powell, but then after the fact reckoned the Fed may not be leaning as hawkish on U.S. monetary policy as many expected. Also, the FOMC meeting’s results appear to be a classic case of “sell the rumor, buy the fact” from the shorter-term futures traders. December gold was last up $21.20 at $1,785.00 and December Comex silver was last up $0.634 at $23.865 an ounce.

The market place is still digesting the FOMC meeting that ended Wednesday afternoon. The Fed announced its tapering of monthly bond buying, as expected. It’s also expected the tapering will wind down next summer. There were no big surprises in the FOMC statement or Fed Chair Powell’s press conference, which suggested the marketplace had pretty well dialed in the outcome. Powell did suggest that U.S. interest rate hikes do not necessarily have to come after tapering winds down–and that leaned a little dovish and may have helped lift gold prices off their daily lows Wednesday.

On tap Thursday is the regular monetary policy meeting of the Bank of England. The BOE left its monetary policy unchanged but has hinted recently that its monetary policy will also start to tighten due to inflationary pressures.

Speaking of inflation, it’s running hotter in the Euro zone. The zone’s September producer priced index was reported up 2.7% from August and up a whopping 16.0%, year-on-year.

Global stock markets were mixed to mostly firmer in overnight trading. The U.S. stock indexes are pointed to mixed openings when the New York day session begins. The U.S. indexes hit record highs overnight.

Traders are awaiting Friday’s important U.S. employment situation report for October. The key non-farm payrolls component of that report is expected to rise 450,000 compared to a rise of 194,000 in the September report.

The key outside markets today see the U.S. dollar index solidly higher. Nymex crude oil prices are higher and trading around $82.40 a barrel. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.574%.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the Challenger job-cuts report, the international trade report, preliminary productivity and costs, the global services PMI, and the monthly U.S. chain store sales index.

Technically, December gold futures bulls have lost their slight overall near-term technical advantage. A four-week-old uptrend on the daily chart has been negated. Bulls’ next upside price objective is to produce a close above solid resistance at the October high of $1,815.50. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the September low of $1,721.10. First resistance is seen at Wednesday’s high of $1,789.30 and then at this week’s high of $1,797.80. First support is seen at today’s low of $1.769.30 and then at this week’s low of $1,758.50.

The silver bears have the slight overall near-term technical advantage. A two-week-old downtrend is in place on the daily bar chart. Silver bulls’ next upside price objective is closing December futures prices above solid technical resistance at $25.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $22.50. First resistance is seen at $24.00 and then at this week’s high of $24.175. Next support is seen at today’s low of $23.485 and then at this week’s low of $23.045

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.cm