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Gold, silver see price gains as another U.S. inflation report runs hot

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(Kitco News) - Gold and silver prices are posting modest gains in early U.S. action Wednesday, following yet another U.S. inflation report that ran record hot. June gold futures were last up $5.30 at $1,981.10 and May Comex silver was last up $0.135 at $25.88 an ounce.

On tap today in the U.S. was another inflation report, the producer price index for March, which came in at up 1.4% from February and compares to the forecast for up 1.1%. Year on year, PPI was up 11.2%, which is a record reading for the report. On Tuesday the U.S. consumer price index for March was the highest reading in over 40 years, at up just over 8% year-on-year.

Global stocks markets were mixed to firmer overnight. The U.S. stock indexes are pointed toward mixed openings when the New York day session begins. Focus of equities traders is on corporate earnings reports.

In overnight news, the International Energy Agency cut global oil demand in 2022 by 260,000 barrels per day, to 99.4 million barrels per day, mostly due to raging Covid in China.

Recession risk rises as WoodMac lowers its global economic forecasts

Meantime, China reported its March exports were up 14.7%, year-on-year, while its imports were down 0.1%. Exports were in line with market expectations but imports were forecast to rise 8.0%. The weakening import pace is also likely due to major Covid lockdowns in China’s cities.

Nymex crude oil futures prices are higher today and trading around $101.50 a barrel. The U.S. dollar index is firmer early today and hit another two-year high overnight. The yield on the 10-year U.S. Treasury note is presently fetching 2.76%.

Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey and the weekly DOE liquid energy stocks report.

Live 24 hours gold chart [Kitco Inc.]

Technically, the June gold futures bulls have the firm overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in April futures above major resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,915.00. First resistance is seen at the overnight high of $1,984.80 and then at $2,000.00. First support is seen at the overnight low of $1,966.30 and then at $1,950.00. Wyckoff's Market Rating: 7.0

Live 24 hours silver chart [ Kitco Inc. ]

May silver futures bulls have the firm overall near-term technical advantage and have momentum. Silver bulls' next upside price objective is closing prices above solid technical resistance at $26.16 an ounce. The next downside price objective for the bears is closing prices below solid support at the March low of $24.045. First resistance is seen at $26.00 and then at $26.16. Next support is seen at the overnight low of $25.53 and then at $25.25. Wyckoff's Market Rating: 7.0.

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.