Gold and Silver Prices Surge Following Fed Statement
Gold and silver prices saw a significant boost in U.S. trading on Wednesday, reaching near daily highs after the Federal Reserve released its monetary policy statement. The statement, which kept monetary policy unchanged as expected, was perceived as favorable for precious metals by bullish investors. April gold rose by $13.30 to $2,173.10, while May silver increased by $0.29 to $25.425.
The FOMC statement maintained the Fed Funds interest rate range at 5.25% to 5.50% and noted a neutral stance on policy, indicating that the U.S. economy is growing and inflation remains elevated but has eased. The statement did not imply any immediate rate cuts, suggesting that further cuts would only occur once inflation is under control. Despite this, the Fed foresaw three interest rate cuts later in the year, reassuring traders who interpreted the statement as not overly hawkish.
Looking ahead, investors are eagerly anticipating Fed Chairman Jerome Powell’s press conference for insights into the future trajectory of Fed monetary policy.
In technical terms, April gold futures maintain a strong near-term technical advantage, with a bullish pennant pattern forming. Silver futures also hold a firm overall near-term technical advantage, with an upside price objective of closing above resistance at $26.575.
Additionally, copper prices closed lower but remain in a five-week uptrend, suggesting solid support for the bulls.
The broader market context sees a weakened U.S. dollar index and lower crude oil prices, while the Bank of England is set to hold its regular monetary policy meeting on Thursday.
Ultimately, the Fed’s statement provided a boost for gold and silver prices, offering confidence to precious metals investors amid ongoing market uncertainty.
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