Gold, silver see solid price gains, post FOMC

Gold and silver prices are posting good gains in early U.S. trading Thursday. The metals market traders on this day are reckoning that rising inflation prospects are bullish, as shown by market history. A lower U.S. dollar index today is also friendly for the metals bulls. The safe-haven metals are rallying despite upbeat trader and investor risk appetite late this week. Trading in the metals markets this week is a prime example of the old trading adage, "markets can remain illogical longer than traders can remain solvent." February gold was last up $24.80 at $1,789.30 and March Comex silver was last up $0.715 at $22.265 an ounce.

Global stock markets were mostly up in overnight trading. U.S. stock indexes are pointed toward solidly higher openings when the New York day session begins, including the S&P 500 hitting a new record high overnight.

Traders and investors Thursday are still digesting the U.S. Federal Reserve FOMC meeting results. The FOMC statement somewhat surprisingly said three interest rate increases are likely in 2022, and that U.S. inflation is rising but suggested it will back off in the coming months. The FOMC is accelerating its monthly asset purchases tapering, which will end in March. The marketplace correctly expected a hawkish lean from the FOMC, but the better clarity on timing and actions of the Fed appeared to assuage traders of many markets, as evidenced by the rally in U.S. stock indexes, stable bond yields and a weaker U.S. dollar index.

Now, the marketplace is awaiting the results of today's European Central Bank and Bank of England monetary policy meetings. The BOE just announced it is raising its main interest rate by 15 basis points (0.15%).

Exclusives

The global copper supply chain needs to be rebuilt. Hundreds of billions will be flowing into the industry. Much of this funding must flow into the copper exploration companies.


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