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Gold, silver firmer on bullish outside mkts; U.S. PPI looms

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(Kitco News) - Gold and silver prices are modestly up in midday U.S. trading Thursday. The precious metals are being supported by a lower U.S. dollar index and firmer crude oil prices on this day. Bullish charts are also inviting the technical traders to the long sides of the gold and silver markets. February gold was last up $2.50 at $1,800.60 and March silver was up $0.333 at $23.25.

Traders are awaiting the next U.S. inflation data point, which is Friday morning’s producer price index report for November. PPI is seen coming in at up 0.2% from October—the same rise as seen in last month’s PPI report.

U.S. stock indexes are higher at midday, on corrective bounces from this week’s solid selling pressure. The U.S. stock index bulls have seen near-term price uptrends on the daily bar charts negated this week.

Still, risk sentiment worldwide has up-ticked a bit this week as China has significantly eased up on its strict Covid lockdown measures, suggesting the world’s second-largest economy may start to pick up steam at a faster pace now. This element has been supportive to the precious metals market bulls.


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The key outside markets today see the U.S. dollar index lower and not far above this week’s 3.5-month low. Nymex crude oil prices are modestly higher trading around $72.50 a barrel. Prices Wednesday hit an 11-month low. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently 3.476%.

Live 24 hours gold chart [Kitco Inc.]

Technically, February gold futures bulls have the overall near-term technical advantage. Prices are in a five-week-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at this week’s high of $1,822.90. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,750.00. First resistance is seen at the today’s high of $1,806.90 and then at $1,822.90. First support is seen at this week’s low of $1,778.10 and then at $1,770.00. Wyckoff's Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures bulls have the overall near-term technical advantage. Prices are in a choppy three-month-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at $20.79. First resistance is seen at this week’s high of $23.69 and then at $24.00. Next support is seen at today’s low of $22.725 and then at this week’s low of $22.19. Wyckoff's Market Rating: 6.5.

March N.Y. copper closed up 265 points at 388.70 cents today. Prices closed nearer the session high and hit a three-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 400.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 354.70 cents. First resistance is seen at today’s high of 391.25 cents and then at the November high of 394.70 cents. First support is seen at this week’s low of 377.30 cents and then at 370.00 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.