Gold and silver prices aresolidly higher in early-afternoon U.S. trading Wednesday. Both metals pushedhigher in the immediate aftermath of dovish comments from Federal ReserveChairman Jerome Powell. February gold futures were last up $10.90 an ounce at$1,230.00. March Comex silver was last up $0.239 at $14.46 an ounce.

Powellsurprised the markets today by delivering dovish remarks on U.S. monetarypolicy in a speech to the Economic Club of New York.Powell said at present, U.S. interest rates are just below “neutral” levels andthat the Fed will remain data dependent, with no set path on adjusting interestrates. Traders and investors interpreted Powell’s comments as meaning theFed will likely raise interest rates slightly at its December meeting, butafter that all bets are off. Prior to Powell’s speech, the sense of themarketplace was that the Federal Reserve would continue on a gradual rate-hikecourse in 2019. Powell also intimated that U.S. inflation is not at allproblematic at present. The U.S. stock market rallied strongly on the news,while the U.S. dollar index sold off moderately.

Today’s second estimate of third-quarter U.S. GDPshowed an annual growth rate of 3.5%, which was right in line with marketexpectations. The price index (an inflation indicator) was up 1.7% on an annualbasis, which was also in line with forecasts. Gold and silver prices showed nosignificant reactions to the report.

Focus this week is on the upcoming Group of 20meetings that begin Friday in Argentina and will feature a face-to-face meetingbetween the U.S. and Chinese presidents on Saturday. The world’s two largesteconomies are locked in a heated trade war. President Trumpmade hardline comments on the matter Monday, but his chief economic advisor onTuesday sent mixed signals on any hopes for an agreement this weekend. There isgeneral agreement that the trade war is hurting China’s economy much more thanthe U.S. economy.