Gold Sees Slight Bounce As Fed Makes No Rate Change

(March 19, 2025 - Jim Wyckoff, Kitco News)

(Kitco News) - Gold prices are just a bit higher early afternoon U.S. trading Wednesday, in the immediate aftermath of the Federal Reserve’s FOMC policy statement that contained no big surprises. Silver futures are solidly down on profit taking by the shorter-term futures traders after recent gains. April gold was last up $4.10 at $3,045.00. May silver prices were last down $0.508 at $34.30.

The U.S. data point of the week saw the Federal Reserve Open Market Committee (FOMC) meeting statement show no interest rate change, which was expected by the marketplace. The statement said the U.S. economic outlook is uncertain at present and that inflation remains somewhat elevated. The statement said the Fed will also slow the runoff of its assets, which is, in effect, a slight monetary-policy-easing move. Gold traders breathed a sigh of relief the FOMC statement did not lean hawkish. Traders were awaiting Fed Chair Powell’s press conference.

Broker SP Angel today said in an email dispatch: “Gold continues to enter the mainstream, with fund managers boosting their allocations, seen in the jump in ETF holdings by 5% over the past 12 months. We would note that ETF holdings remain well below COVID levels, leaving ample room for further rallies as speculators enter the market.”

The key outside markets today see the U.S. dollar index higher. Nymex crude oil futures prices are slightly up and trading around $67.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.296%.

Technically, April gold futures bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,100.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,900.00. First resistance is seen at the contract high of $3,052.40 and then at $3,065.00. First support is seen at the overnight low of $3,031.30 and then at Tuesday’s low of $3,008.20. Wyckoff's Market Rating: 9.5.

May silver futures bulls have the firm overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the October 2024 high of $35.80. The next downside price objective for the bears is closing prices below solid support at $32.215. First resistance is seen at this week’s high of $35.00 and then at $35.50. Next support is seen at the overnight low of $34.27 and then at $34.00. Wyckoff's Market Rating: 7.0.

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