Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.
Daily Resources Overview
Gold and silver prices are holdingmost of Wednesday afternoon’s and this morning’s solid gains, but have backeddown a bit at midday Thursday as the U.S. dollar index has pushed higher and toits daily high. Gold today hit a nearly eight-month high, while silverprices pushed to a six-month high. April goldwas last up $10.00 an ounce at $1,325.50. March Comexsilver was last up $0.143 at $16.07 an ounce.
Traders and investors Thursday werestill digesting the Federal Reserve’s Open Market Committee (FOMC) meeting thatconcluded Wednesday afternoon. The FOMC statement contained nomonetary policy changes but the FOMC members said they will now be patient onfuture Fed rate hikes due to muted inflationary pressures and some concernsabout global economic growth. The statement also suggested the Fed will not bein such a hurry to further reduce its balance sheet of U.S. securities. FedChairman Jerome Powell said at his press conference that “the case for raisingU.S. interest rates has weakened somewhat.” While no change in monetary policywas expected, the FOMC statement was deemed fully dovish on U.S. monetarypolicy. That’s bullish for raw commodities, including the precious metals.
U.S. and China high-level tradeofficials are meeting in Washington, D.C, with todayscheduled to conclude the meetings. There is no consensus at all on anyprogress that may or may not be made at this week’s talks. Markets will reactto any significant announcements coming out of the meeting.
The next big economic data point is Fridaymorning’s U.S. jobs report for January from the Labour Department. The key non-farm payrolls number is forecastto come in at up 170,000 in the month. Wednesday’s U.S. ADP national employmentreport came in at up 213,000 in January. That was well above the average tradeguess of up 183,000 and hints that the Friday non-farm jobs number could comein stronger than expected. The outside markets today see the U.S. dollarindex trading higher on a rebound from this week’s selling pressurethat pushed prices to a three-week low. Meantime, Nymex crude oilprices are higher, hit a nine-week high, and are trading around $55.00 abarrel.