Market Reaction to FOMC Meeting
Gold and silver prices saw a slight decline in early U.S. trading, a result of some chart consolidation following a rally post the Federal Reserve’s FOMC meeting. This meeting addressed the lack of progress towards the inflation target, although there were no surprises that shook the marketplace. While the Fed leaned towards a hawkish stance on U.S. monetary policy, investors seemed relieved that there were no drastic changes announced.
Global Economic Outlook
The OECD raised its 2024 global economic growth projection to 3.1% from 2.9%, indicating a positive outlook for the world economy. Additionally, the Japanese yen saw a rise against the U.S. dollar, potentially due to intervention from the Bank of Japan.
Upcoming U.S. Jobs Report
Investors are awaiting the April U.S. jobs report, with expectations for a rise in non-farm jobs. Positive job reports could impact the market sentiment and potentially influence the direction of gold and silver prices.
Technical Analysis
Technically, gold futures have a near-term advantage, but the bulls are beginning to fade. On the other hand, silver bulls and bears are on a level playing field with a downward trend in place. Price objectives for both metals indicate potential movements based on technical support and resistance levels.
