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Gold Near Steady, Shows Little Reaction to U.S. Data

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(Kitco News) - Gold prices are near steady in early U.S. trading Wednesday. The yellow metal is so far ignoring a batch of U.S. economic data, including a producer price index report that was a bit hotter on inflation than expected. April Comex gold futures were last up $1.20 an ounce at $1,328.20. May Comex silver was last up $0.023 at $16.650 an ounce.

The key economic data points of the day Wednesday were the U.S. producer price index and retail sales reports for February. PPI came in at up 0.2% overall, and up 0.2% on the core level, which excludes food and energy prices. Producer prices were up 2.8%, year-on-year. PPI was forecast to come in at up 0.1% from January. While the PPI data was just a bit hotter than expected, markets are not showing a big reaction to the news. The U.S. consumer price index was reported on Tuesday and it was deemed tame.

Meantime, U.S. retail sales in February were reported down 0.1% versus trade expectations for up 0.3%. That was the third month in a row for a decline in retail sales.

World stock markets were mostly weaker overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins.

The world marketplace is still watching developments in the Trump administration after President Trump unceremoniously fired his secretary of state, Rex Tillerson, on Tuesday. The Trump administration turmoil is an unsettling element for the marketplace due to the uncertainty regarding what could happen next.

In overnight news, European Central Bank President Mario Draghi said in a speech in Frankfurt that the ECB is not yet prepared to exit its quantitative easing of monetary policy due to recent higher volatility in many markets, the potential for a world trade war and due to the recent strength in the Euro currency.

The key “outside markets” on Wednesday morning see the U.S. dollar index slightly firmer. Meantime, Nymex crude oil prices are also modestly up.

Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, retail sales, manufacturing and trade inventories, and the weekly DOE liquid energy stocks report.

Live 24 hours gold chart [Kitco Inc.]

Technically, April gold futures bulls and bears are on a level overall near-term technical playing field. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,350.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00. First resistance is seen at the overnight high of $1,330.50 and then at $1,335.00. First support is seen at $1,320.00 and then at last week’s low of $1,313.20. Wyckoff's Market Rating: 5.0

Live 24 hours silver chart [ Kitco Inc. ]

May silver futures bears have the overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the February high of $17.04 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 $16.75 and then at the March high of $16.895. Next support is seen at this week’s low of $16.43 and then at last week’s low of $16.33. Wyckoff's Market Rating: 4.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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