Gold Slightly Down As Greenback Gains
(Kitco News) - Gold prices were ending the U.S. day session modestly lower Wednesday, pressured slightly by a firmer U.S. dollar index. The yellow metal ignored a batch of U.S. economic data released earlier today, including a producer price index report that was a bit hotter on inflation than expected. April Comex gold futures were last down $2.70 an ounce at $1,324.40. May Comex silver was last down $0.102 at $16.525 an ounce.
The U.S. producer price index and retail sales reports for February were closely scrutinized today. 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 mostly ignored the report. 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. This report was not a significant markets-mover, either.
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.
Technically, April gold futures prices closed nearer the session low today. The gold bulls have the slight overall near-term technical advantage, but need to show more power soon to keep it. 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 today’s 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: 5.5
May silver futures prices closed near the session low today. The silver 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 this week’s high of $16.69 and then at $16.75. Next support is seen at last week’s low of $16.33 and then at the March low of $16.16. Wyckoff's Market Rating: 4.0.
May N.Y. copper closed up 200 points at 315.75 cents today. Prices closed near mid-range and hit a two-week high today. The copper bulls have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 325.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the February low of 304.65 cents. First resistance is seen at today’s high of 319.20 cents and then at 322.50 cents. First support is seen at today’s low of 312.65 cents and then at 310.00 cents. Wyckoff's Market Rating: 6.0.