Gold and Silver price gain from dovish Fed, precious metals look further to the upside

• Gold price bulls come back after Federal Reserve triggers dovish interest rate hike.
• Silver price makes seven-week highs as precious metals appreciate.
• US Treasury yields fall below 3.5%, sink US Dollar value.

Gold traders are again rejoicing after the Federal Reserve (Fed) confirmed expectations of a modest 25 basis points interest rate hike on Wednesday. The bright metal has re-gained the $1,970 mark, back on the uptrend after having retraced from year-to-date highs on Monday and Tuesday. Precious metals have all benefited from the super-important central banking decision, as Silver triggered a seven-week high just short of $23 to continue with its uptrend.

The fall of the US Treasury bond yields, with the benchmark 10-year bond netting below 3.5% after the Fed decision, is behind this move, as the US Dollar, the measure of all commodity markets, including Gold and Silver, is highly correlated to it.

Gold price technicals suggest more gains to come for the bulls

Gold price still has some way to go before testing the levels above $2,000 seen on early Monday peak, a trend that is likely to continue according to market analysts.

Pablo Piovano, News Editor at FXStreet, deems another visit to the psychological round mark “on the cards”. Piovano analyzes open interest data from the CME Group in the Gold futures market to support that bullish thesis:

Anil Panchal, Technical Analyst at FXStreet, looks deep at the technicals of the XAU/USD price action, seeing room for a consistent rise, as Gold price remains out of overbought territory despite the uptrend seen in recent weeks:

Gold price technical analysis by Anil Panchal, News Editor at FXStreet

According to Panchal, the “two-month-old upward-sloping resistance line, near $2,015, acts as the last defense of the Gold bears”.

Silver price rises to seven-week highs, but bulls face multiple hurdles ahead

The price of Silver has made even more strides than its shinier counterpart, as XAG/USD triggered a seven-week high on the back of the Federal Reserve meeting, shortly reaching the $23 mark before retracing just below it. Silver price had not rallied as abruptly last week, but it is now making more gains than Gold.

The upside of the precious metal number two is a bit more capped than Gold’s, though, as the year-to-date highs set in January are still away and remain a thick resistance cluster. According to Anil Panchal, it will not be easy for the Silver metal to make new year-to-date highs:

Silver price technical analysis by Anil Panchal, News Editor at FXStreet