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Gold price near steady as U.S. inflation report runs hot

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(Kitco News) - Gold and silver prices are trading both sides of unchanged in early U.S. trading Wednesday, in the wake of another U.S. inflation report that is seen as problematic for consumers and the economy. Solidly higher crude oil prices at mid-week are working in favor of the metals market bulls. June gold futures were last down $1.50 at $1,839.50 and July Comex silver was last up $0.051 at $21.475 an ounce.

The U.S. data point of the week is just out and came in hot: the consumer price index report for April, which came in at up 8.3%, year-on-year. The number was expected to come in at up 8.1%. In March, the PPI rose 8.5% from a year earlier. Inflation remains a main concern for traders and investors, along with the ongoing Russia-Ukraine war and Covid lockdowns in China. Gold and silver prices did back down a bit from their moderate gains seen just before the CPI report was released. The data falls into the camp of the U.S. monetary policy hawks, who want to see a more aggressive pace of U.S. interest rate increases from the Federal Reserve.

Global stock markets were mostly higher overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins, and lost overnight gains on the hot U.S. inflation data. The S&P 500 and Nasdaq futures markets hit 12-month lows Tuesday and are in solid near-term price downtrends, suggesting the path of least resistance for the indexes will remain sideways to lower.  

President Biden says inflation is his top domestic priority

The key outside markets today see Nymex crude oil futures prices solidly up and trading around $103.25 a barrel. Meantime, the U.S. dollar index is a bit firmer in early trading. The yield on the 10-year U.S. Treasury note is fetching 3.025%.

Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, real earnings, the monthly Treasury budget statement and the weekly DOE liquid energy stocks report.

Live 24 hours gold chart [Kitco Inc.]

Technically, the June gold futures bears have the firm overall near-term technical advantage. A two-month-old downtrend line is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at Tuesday’s high of $1,864.70 and then at $1,875.00. First support is seen at the overnight low of $1,830.60 and then at $1,815.00. Wyckoff's Market Rating: 3.5

Live 24 hours silver chart [ Kitco Inc. ]

July silver futures bears have the solid overall near-term technical advantage. Prices are trending sharply down on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $23.50 an ounce. The next downside price objective for the bears is closing prices below solid support at $20.00. First resistance is seen at Tuesday’s high of $22.085 and then at this week’s high of $22.395. Next support is seen at this week’s low of $21.155 and then at $21.00. Wyckoff's Market Rating: 2.0.

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.