The market seems to be very disappointed with the Fed, we didn't get anything additional in terms of policy guidance or stimulus prospects, so that sunk risk assets, pushed the dollar up and gold got caught in that trade.
The Fed said the pace of the recovery in U.S. economic activity and employment had moderated in recent months, but kept its key interest rates and monthly bond purchases unchanged. Weighing further on gold was the delay in a $1.9 trillion U.S. coronavirus stimulus deal, which has not received a green signal from Republicans over concerns about the price tag.
The Biden administration will purchase 200 million more coronavirus vaccines and funnel more to states now, a senior administration official said. The International Monetary Fund raised its forecast for global economic growth in 2021 and said the coronavirus-triggered downturn last year would be nearly a full percentage pointless severe than expected.
Silver futures prices and shares of silver miners climbed on Thursday after a user in Reddit’s popular WallStreetBets forum posted about executing a “short squeeze” on the precious metal.
Silver futures on the Comex exchange rose by as much as 6.7% to $27.1 an ounce.
Ahead in this week, we may continue to witness huge volatility and gold may trade with bearish bias where it could face resistance near 50100 and support is seen near 47550 whereas,
Silver may trade in the range of 64800-70800. Whereas on COMEX gold may trade in the range of $1820-$1890 and Silver may trade in the range of $24.20-$28.10
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