In the aftermath of the Federal Open Market Committee (FOMC) meeting, gold and silver prices rallied, hitting new daily highs. The FOMC's surprisingly dovish stance on U.S. monetary policy drove the precious metals market sharply upwards. On Wednesday, February gold rose by $26.60 to reach $2,020.10 while March silver increased by $0.434 to $23.425.

The focus of the marketplace was the two-day FOMC monetary policy meeting by the Federal Reserve, which recently concluded. According to the FOMC statement, while U.S. economic growth has slowed, inflation still remains elevated. Most FOMC officials now anticipate rate cuts happening in 2024, 2025, and 2026. Market participants interpreted the FOMC statement as surprisingly dovish on U.S. monetary policy. Investors now eagerly await the press conference from Fed Chairman Jerome Powell, expecting to hear his views that the fight against inflation is not over.

This week's U.S. inflation data, in the form of the consumer price and producer price indexes for November, closely aligned with market expectations, indicating that U.S. inflation continues to cool. This data provided some reassurance to the marketplace, at least temporarily, as U.S. stock indexes achieved new highs amid a seasonal Santa Claus rally.

The U.S. dollar index weakened and experienced selling pressure following the FOMC statement. Additionally, Nymex crude oil prices rebounded, reaching around $69.75 per barrel after hitting a 5.5-month low overnight. However, the downward trend in crude oil market sentiment cast a shadow over various raw commodity sectors. The yield on the benchmark U.S. Treasury 10-year note currently stands at 4.092%, slightly lower than its level just before the release of the FOMC statement.

From a technical standpoint, February gold futures prices reached a three-week low earlier today. Although the bulls hold an overall near-term technical advantage, they regained some momentum during the day. On the daily bar chart, gold prices have been in an uptrend for the past two months. The next upside price target for the bulls is to close above the robust resistance level of $2,050.00. On the other hand, bears' next near-term downside price goal would be to push futures prices below the solid technical support level at the November low of $1,955.40. The first resistance level is identified at this week's high of $2,023.70, followed by the October high of $2,039.70. The initial support level is noted at $2,000.00, with today's low being $1,987.90.

Similarly, March silver futures prices hit a three-week low earlier today, giving the slight overall near-term technical advantage to the silver bears. The daily bar chart indicates a downward trend in silver prices. In terms of upside price objectives, silver bulls aim to close prices above the strong technical resistance level of $24.50. Conversely, the bears' next downside price objective is to close prices below the solid support level at the October low of $21.17. The first resistance level stands at $23.75, followed by $24.00. The immediate support level is observed at $23.00, with today's low being $22.785.

Meanwhile, March N.Y. copper closed at 378.45 cents, down 30 points today. Despite the day's decline, the copper bulls currently possess a slight overall near-term technical advantage. Copper prices have been moving in a choppy, seven-week-old uptrend on the daily bar chart. The bulls' next upside target is to push and close prices above the solid technical resistance level at 393.30 cents, which reflects the December high. Conversely, the bears' next downside price objective is to close prices below the steadfast technical support at the November low of 362.60 cents. The first resistance level can be found at this week's high of 383.60 cents, followed by last Friday's high of 386.40 cents. The initial support level resides at today's low of 375.30 cents, with last week's low at 372.90 cents.

In conclusion, the precious metals market experienced substantial gains as gold and silver prices surged following the Fed's dovish stance on U.S. monetary policy. The outcome of the FOMC meeting, highlighting the moderation of U.S. economic growth and persistent inflation, led to increased investor interest in gold and silver. As market participants eagerly await Fed Chairman Jerome Powell's press conference, the focus now shifts to his potential hawkish tone regarding the ongoing battle against inflation.