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Gold, silver up on hot inflation, bullish outside markets

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(Kitco News) - Gold and silver prices are posting moderate gains in midday U.S. trading Wednesday, after another U.S. inflation report that ran record hot. A big rally in crude oil prices this week and a lower U.S. dollar index on this day are bullish outside market forces for the precious metals at mid-week. June gold futures were last up $6.80 at $1,982.90 and May Comex silver was last up $0.245 at $25.975 an ounce.

The U.S. producer price index for March, reported this morning, 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 firmer at midday. Focus of equities traders is on corporate earnings reports.


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Nymex crude oil futures prices are higher today and trading around $103.00 a barrel. The U.S. dollar index is lower at midday after hitting a two-year high overnight. The yield on the 10-year U.S. Treasury note is presently fetching 2.65%--down a bit from this week’s three-year high.

Live 24 hours gold chart [Kitco Inc.]

Technically, April gold futures prices hit another four-week high today. Bulls have the firm overall near-term technical advantage. Bulls' next upside price objective is to produce a close above solid 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 today’s high of $1,985.80 and then at $2,000.00. First support is seen at today’s 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 the March high of $27.495 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 $26.16 and then at $26.50. Next support is seen at today’s low of $25.53 and then at $25.00. Wyckoff's Market Rating: 7.0.

May N.Y. copper closed down 15 points at 470.85 cents today. Prices closed near mid-range 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 the April high of 486.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the March low of 446.85 cents. First resistance is seen at 476.55 cents and then at 480.00 cents. First support is seen at 465.00 cents and then at this week’s low of 462.40 cents. Wyckoff's Market Rating: 6.0.

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.