The Gold and Silver markets rallied hard Thursday midday just after of the FOMC announcement that the Federal Reserve has embarked upon more easing of US monetary policy; the Big Stimulus extends.
Dec Gold ran to a fresh 6 month high at 1,775.00.
Dec Gold last traded + 37.40 at 1,771.10 oz.
Spot Gold was last quoted + 37.50 at 1,769.50 oz.
Dec Comex Silver last traded + 1.298 at 34.60 oz.
The FOMC statement was aggressively accommodative, which surprised even those who were already expecting the actions to be announced Thursday.
The Fed will now pump $40-M a month into the US financial system (home mortgages) and will keep interest rates very low until at mid Y 2015. That news hammered the USD index to a fresh 4 month low and was Bullish for US stocks.
In other overnight news: the Italian government had a successful long-term bond offering, with most agreeing the debt sale went well due to the European Union's recent proclamations to support governments' debt sales by having the European Central Bank sop up any excess debt.
Greece's unemployment rate rose to a record high of 23.6% in Q-2. The IMF said Thursday that Greece would need a 3rd round of financial bailout assistance.
The USD index traded lower Thursday and extended its losses to hit another fresh 4 month low after the FOMC statement. The Greenback Bears have the solid near-term technical advantage as a 7-wk-old downtrend line is in place on the daily chart.
Crude Oil prices were higher on Thursday and hit a fresh 4 month high on the Big Stimulus news.
Crude Oil Bulls have the overall near-term technical advantage in here.
WTI Crude Oil 98.10 1.09 (+1.12%)
These 2 Key outside markets are in a Bullish mode for precious metals Thursday and will continue to have a daily influence on precious metals prices.
The London PM Gold fixing is 1,730.50 vs the prior PM fixing at 1,737.00.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.