Gold Ends Weaker, at 4-Week Low; FOMC A Non-Event

Published: May 04, 2017 10:08 (GMT+8)
Gold prices ended the U.S. day session moderately down and hit a four-week low Wednesday.

Jim Wyckoff  

Wednesday May 03, 2017 14:14

(Kitco News) - Gold prices ended the U.S. day session moderately down and hit a four-week low Wednesday. The sellers have some momentum amid a lack of fresh, bullish news to support the safe-haven metal. The just-released FOMC statement contained no surprises the markets were not significantly impacted. There are other important economic and political developments that also lie just ahead. June Comex gold was last down $8.80 an ounce at $1,255.30. July Comex silver was last down $0.179 at $16.59 an ounce.

Wednesday afternoon’s FOMC statement at the conclusion of the two-day meeting of Federal Reserve officials said U.S. economic growth has slowed recently, but not enough to change the Fed’s intentions on gradually raising interest rates down the road.

The next key data point is Friday’s April U.S. employment report from the Labor Department. The key non-farm payrolls number in Friday’s jobs report is forecast to come in at up around 190,000. Today the ADP national employment report showed a rise of 177,000 jobs in April.

Traders and investors are also looking ahead to this weekend’s French presidential elections. A surprise win by the right-wing candidate Marine Le Pen would likely roil many stock and financial markets. Market watchers remember that Donald Trump was not expected to win the U.S. presidential election, either. The two French candidates are holding a televised debate Wednesday evening, which could sway voters.

The key outside markets on Wednesday saw the U.S. dollar index trading modestly higher. The greenback bears still have the overall near-term technical advantage. Meantime, Nymex crude oil prices were slightly higher but the bears have the near-term technical advantage as prices hit a 5.5-month low on Tuesday.

Technically, June gold futures prices closed nearer the session low today. The gold bulls and bears are on a level overall near-term technical playing field, but the bears still have momentum on their side. Prices are in a three-week-old downtrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,241.50. First resistance is seen at today’s high of $1,257.80 and then at this week’s high of $1,272.40. First support is seen at today’s low of $1,245.60 and then at 1,241.50. Wyckoff's Market Rating: 5.0

July silver futures prices closed nearer the session low and hit another 3.5-month low today. The silver market bears have the solid overall near-term technical advantage amid the recent steep downdraft in prices. This market is now way short-term oversold, technically, and due for a decent bounce very soon. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at today’s high of $16.895 and then at $17.00. Next support is seen at today’s low of $16.52 and then at $16.25. Wyckoff's Market Rating: 2.5.

May N.Y. copper closed down 970 points at 253.85 cents today. Prices closed near the session low. The copper bears have gained the slight overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 273.10 cents. The next downside price objective for the bears is closing prices below solid technical support at the April low of 250.85 cents. First resistance is seen at 255.00 cents and then at 260.00 cents. First support is seen at today’s low of 253.70 cents and then at 250.85 cents. Wyckoff's Market Rating: 4.5

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
Ghana draft bill proposes state special share and shorter mining leases
6 hours ago
Ghana draft bill proposes state special share and shorter mining leases
Read More
Ghana draft bill proposes state special share and shorter mining leases
Ghana draft bill proposes state special share and shorter mining leases
[SMM Gold Flash] A draft mining bill reviewed by Reuters on 30 September would let Ghana’s mines minister require companies to issue the state a free special share with consent rights over major transactions. It would retain the existing 10% free-carried state interest and limit mining leases to 15 years or the projected mine life, whichever is shorter. The draft would also allow future rules requiring local processing and restricting exports of unprocessed concentrates. None of these proposals has been enacted; Reuters did not establish when the draft was prepared. For Ghana’s gold miners, the proposed rights and shorter leases could affect financing, valuations and renewal decisions. Under the draft, existing rights holders seeking renewal would receive priority consideration for equivalent licences. Mining companies expect further consultation before parliamentary debate, Reuters reported. The final wording and timing remain uncertain.
6 hours ago
Ariana reports water strike as Dokwe feasibility work advances
Oct 01, 2026 16:43 (GMT+8)
Ariana reports water strike as Dokwe feasibility work advances
Read More
Ariana reports water strike as Dokwe feasibility work advances
Ariana reports water strike as Dokwe feasibility work advances
[SMM Gold Flash] Ariana Resources said on 30 September that three of 12 planned water boreholes had been completed north of its Dokwe gold project in Zimbabwe. The third hole, about 10 km from the deposit, encountered what the company described as strong flows of good-quality water; it did not disclose a sustained pumping yield. Ariana also reported completion of six geotechnical holes totalling 1,251 metres at Dokwe Central. Laboratory testing and an independent mineral resource estimate remain in progress. A dependable water source and geotechnical data are needed to design the proposed processing plant and open pit. The results advance the feasibility work but do not establish mine water supply capacity or a final reserve. Ariana plans further sterilisation drilling and surveys; those programmes had not begun in this announcement, and Dokwe is not producing gold.
Oct 01, 2026 16:43 (GMT+8)
Burkina Faso inaugurates its first national gold refinery
Sep 30, 2026 17:20 (GMT+8)
Burkina Faso inaugurates its first national gold refinery
Read More
Burkina Faso inaugurates its first national gold refinery
Burkina Faso inaugurates its first national gold refinery
[SMM Gold Flash] Burkina Faso inaugurated RAFFINOR-BF in Ouagadougou on 28 September, the government and mines ministry said. The ministry reported that officials observed the refining of initial gold bars during a tour of the plant. It puts the first phase’s theoretical refining capacity at 164 tonnes a year; an additional phase would raise that to 515 tonnes a year. The government says the facility cost about CFA11 billion and was financed mainly through the state precious-metals company SONASP and private partners. The opening marks a step in Burkina Faso’s effort to refine industrial and artisanal gold domestically and retain more processing value. Capacity is a design figure, however: neither the inauguration nor the observed first bars establishes annual throughput, sustained operation or sufficient supply. Feedstock collection, refinery utilisation and the proposed expansion remain the figures to watch.
Sep 30, 2026 17:20 (GMT+8)