The recently released FOMC Minutes from the Federal Reserve’s Monetary Policy Committee (MPS) recent meeting showed that FOMC members are concerned about rising inflationary pressures and now believe that inflation will last longer than previously thought. Committee members believe that inflation will subside significantly in 2022. Some Fed officials wanted to speed up the pace of “downsizing” the Fed’s bond-buying program. Others expressed concern about rising asset valuations. Members said labor participation is likely to be lower in the coming months due to early retirement. Markets showed little initial reaction to the FOMC meeting minutes.
It was a very busy day for US data releases Wednesday. The big batch of data was a mixed bag, overall, but it’s generally upbeat, and it had little impact on metals or other markets. It appears that US traders and investors have been more focused on the Thanksgiving festivities.
Global stock markets were mixed in overnight trading. US stock indices are mixed in afternoon trading.
The rising Covid-19 cases in Europe and Asia continue to spur risk aversion in the market. Austria is almost on lockdown and German officials are warning that Covid cases are rising at an alarming rate.
Traders are closely watching the Turkish lira this week, which fell sharply to a record low against the US dollar. Turkey’s president forced its central bank to cut its key interest rate recently despite rising inflation fears. This caused the lira to fall into a downward spiral. The lira rebounded slightly on Wednesday.
Today, the major overseas markets are seeing the US Dollar Index rising and hitting a 15-month high. NYMEX crude oil prices are nearing stability and are trading around $78.50 a barrel. The 10-year US Treasury yield currently fetches 1.657%.
Technically, December gold futures prices hit a three-week low today. Bulls still have a slight general technical advantage in the near term but they faded poorly this week and need to show new strength soon to maintain their edge. The seven-week uptrend has stalled on the daily bar chart. The next bullish price target for the bulls is to produce a close above the strong resistance at this week’s high at $1,850.40. The next near-term downside price target for the bears is pushing futures prices below strong technical support at the November low of $1,758.50. We notice first resistance at the day’s high at $1,796.20 and then at $1,800.00. First support is seen at the day’s low at $1,777.40 and then at $1,758.50. Wyckoff Market Rating: 5.5
The December silver futures bears have the overall technical advantage in the near term. The seven-week uptrend has stalled on the daily bar chart. The next bullish price target for the silver bulls is to close prices above strong technical resistance at the November high of $25.49 an ounce. The bears’ downtrend price next target is a price close below the strong support level at the November low of $23.045. We see the first resistance at $24.00 and then Tuesday’s high at $24.34. Next support is seen at this week’s low at $23.28, then at $23.045. Wyckoff Market Rating: 4.0.
Copper in New York in December closed 390 points at 446.20 cents today. Prices closed near the session high today and hit a four-week high. Copper bulls have gained a slight general technical advantage in the near term. The next bullish price target for the copper bulls is to propel and close prices above the strong technical resistance at 460.00 cents. The bears’ downtrend price next target is a price close below strong technical support at the November low of 419.15 cents. We notice the first resistance at today’s high at 449.10 cents, then 455.00 cents. First support is seen at today’s low at 439.15 cents and then this week’s low at 435.20 cents. Wyckoff Market Rating: 5.5.
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