Gold, silver gain amid bullish outside markets
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(Kitco News) - Gold and silver futures prices are higher and near their daily highs in midday U.S. trading Wednesday. The precious metals are boosted at mid-week by positive daily outside markets that include solidly higher crude oil prices that are near last fall's seven-year high, a lower U.S. dollar index that hit a two-month low today, and a slight drop in U.S. Treasury yields. February gold futures were last up $7.70 at $1,826.20 and March Comex silver was last up $0.398 at $23.21 an ounce.
The U.S. data point of the week was Wednesday morning's consumer price index report for December, which came in at up 7.0%, year-on-year. The number was expected to come in at up 7.1%. Today's CPI number is the highest year-on-year consumer inflation in 40 years. Traders will be closely watching how U.S. Treasuries react to the CPI data today. There was little reaction to the CPI data. If yields do rise significantly, that would spook the general marketplace. The yield on the U.S. 10-year Treasury note is presently fetching 1.741%. Inflation in the U.S. and around the globe is still running generally hit in the major economies, which is an underlying bullish element for the metals markets.
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Global stock markets were mostly higher overnight. U.S. stock indexes are firmer at midday.
Federal Reserve Chair Jerome Powell on Tuesday reassured the marketplace that the Fed can reduce the pace of price increases without damaging the economy. He also said the U.S. economy is growing at a solid pace. His comments appeared to assuage, at least for the moment, traders and investors who had been a bit nervous about the Fed tightening U.S. monetary policy.
Technically, February gold futures bulls have the overall near-term technical advantage and have momentum on their side. Bulls' next upside price objective is to produce a close above solid resistance at $1,850.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the January low of $1,781.30. First resistance is seen at the January high of $1,833.00 and then at $1,840.00. First support is seen at today's low of $1,814.40 and then at $1,800.00. Wyckoff's Market Rating: 6.0
March silver futures bears have the overall near-term technical advantage but the bulls are having a good week. Silver bulls' next upside price objective is closing prices above solid technical resistance at $24.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the December low of $21.41. First resistance is seen at the December high of $23.48 and then at $23.75. Next support is seen at today's low of $22.68 and then at this week's low of $22.205. Wyckoff's Market Rating: 3.0.
March N.Y. copper closed up 1,550 points at 458.40 cents today. Prices closed near the session high today and hit a 2.5-month high. The copper bulls have the firm overall near-term technical advantage and gained big power today by producing a bullish upside “breakout” from the recent choppy trading range. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the October high of 477.70 cents. The next downside price objective for the bears is closing prices below solid technical support at the January low of 431.35 cents. First resistance is seen at today's high of 460.10 cents and then at 465.00 cents. First support is seen at 451.15 cents and then at 450.00 cents. Wyckoff's Market Rating: 7.0.