Gold, Silver Prices Push To New Daily Highs, Post-FOMC

New York (Mar 21)  Gold and silver prices are solidly higher in afternoon U.S. trading Wednesday, on short covering and bargain hunting following recent selling pressure. Prices extended already-good gains after the FOMC statement was issued. Gold prices have come down a bit from their highs, however. April Comex gold futures were last up $15.00 an ounce at $1,327.10. May Comex silver was last up $0.335 at $16.525 an ounce.

The major U.S. economic data point of the week saw the Federal Reserve’s Open Market Committee (FOMC) raise interest rates by 0.25%, to a range of 1.5% to 1.75. The rate hike was fully expected by the marketplace. The FOMC signaled that three interest rate hikes will likely occur in 2018, but a total of four cannot be ruled out. The FOMC statement did not suggest inflation is becoming a problem. The Fed also thinks three interest rate increases are in the cards for 2019 and two more in 2020—to then bring the Federal funds rate into a range of 3.25% and 3.5%. Early readings on the FOMC statement are that the FOMC members were just a bit more hawkish on U.S. monetary policy than expected. But ideas are mixed on that matter.

The U.S. stock market added to its daily gains following the FOMC statement. The U.S. Treasury market weakened a bit, and the U.S. dollar index extended its earlier losses to trade solidly down on the day.

Now, Federal Reserve Chairman Jerome Powell will soon hold his first press conference, which will be closely scrutinized by the marketplace.

The Bank of England holds its monetary policy meeting on Thursday.

KitcoNews