Market Overview: Both gold and silver prices are under some slight pressure in early trade this morning, as a stronger dollar index and some profit taking drive some selling. Markets continue to digest Wednesday’s FOMC meeting vote and commentary. The Fed elected to hold rates steady by a vote of 73, but did allude to a hike coming before the end of the year. Action (or lack thereof) and commentary from both the FOMC and Bank of Japan were considered to be dovish in nature, and this dovish tone may potentially fuel further buying interest in precious metals.

Key Data Points: PMI Manufacturing Index Flash was released earlier this morning and showed a reading of 51.4. Overall, the report is pointing to a very weak September, with production at the weakest level in months.

There are several Fed officials speaking today as well, although their engagements will likely not be market-moving.

The data stream will be very closely scrutinized in the coming weeks, as the Fed seems intent on hiking rates in December. It is difficult to imagine the central bank not taking action before the end of the year at this point, although some significant weakness in any key data points could potentially keep the central bank on hold until 2017.

Outside Markets: Stocks are slightly lower in early trade as some profit taking is likely featured following recent gains. With a dovish Fed, the path of least resistance in stocks remains higher, although concerns over potentially exaggerated valuations appear to be spreading.

Bond yields have declined from recent highs following the Fed and FOMC, and may stay within recent ranges.

Oil is slightly lower today but has been on the rise as investors get ready for the upcoming OPEC meeting. Investors are weighing the possibility of a cut or freeze in production at next week’s meeting, although investors appear skeptical that any such measures will be taken.

The Big Picture: The two key central bank meetings this week in the U.S. and Japan both pointed to ongoing accommodative monetary policies. This may not only keep a floor under gold and silver prices, but ma also potentially serve as a catalyst for higher prices. The Fed has again lowered its target Fed Funds rate, and has indicated that the pace of economic growth will warrant a very gradual series of rate hikes. At this point, one hike is still expected in 2016, while two hikes are expected next year.