The FOMC minutes on Wednesday afternoon provided no surprises and little new information. As such, the highly awaited release barely moved our market and had little impact on all other markets’ intraday trading. While the committee did express concern over a slowing in job creation and economic activity, they did remove key words like “patient” that normally provide support for precious metals and most commodity prices. All in all, I would say the report leaned toward the dovish side and a rate hike for June is off the table. The committee continues to stress that their decision on a rate hike will be data driven, but so far the data does not support a rate hike, especially while consumer confidence and retail sales are falling.
In front of a three-day weekend we find ourselves with a market again looking for direction. The USD has moved a bit higher, but so far precious metals have been able to shake that off. On the flip side, weak economic data has not provided the steam for higher prices. This morning’s consumer price data revealed that the Index has fallen 0.2 percent over the past 12 months which is a further sign that the FOMC’s inflation target will not be met and further delay a rate hike. With gold setting the course, look for support from $1,201.00 through $1,196.00 and resistance from $1,210.00 through $1,215.00.
Enjoy the long weekend,
Roy