Gold, silver see two-sided trade ahead of U.S. CPI
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(Kitco News) - Gold prices are a bit higher and silver prices a bit lower in midday U.S. trading Wednesday. Gold prices did score a seven-month high overnight. Positioning ahead of a key U.S. inflation report was featured at mid-week. February gold was last up $3.40 at $1,879.80 and March silver was down $0.10 at $23.57.
Traders are awaiting the U.S. data point of the week, due out Thursday morning: the consumer price index report for December. The CPI headline number is expected to come in at up 6.5%, year-on-year, which compares to the 7.1% rise reported in the November report. A bigger miss to the upside or downside on the CPI headline number would very likely significantly move many markets.
Global stock markets were mixed overnight. U.S. stock indexes are higher at midday. Trader and investor risk appetite is not robust early in the new year, amid most major central banks that are still hawkish on their monetary policies. However, risk aversion is not keen, either, due to hopes China’s economy, the second-largest in the world, will see improved growth after the Chinese government relaxed Covid restrictions.
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The key outside markets today see the U.S. dollar index slightly higher on a corrective bounce prices Monday hit a 6.5-month low. Nymex crude oil futures prices are solidly up and trading around $77.50 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.57%.
Technically, February gold futures prices hit a seven-month high again today. Bulls have the solid overall near-term technical advantage. A two-month-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the $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 today’s high of $1,890.90 and then at $1,900.00. First support is seen at this week’s low of $1,869.30 and then at $1,850.00. Wyckoff's Market Rating: 8.0
March silver futures bulls have the firm overall near-term technical advantage. However, a four-month-old uptrend on the daily bar chart has stalled out again. 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 $22.00. First resistance is seen at $24.00 and then at this week’s high of $24.285. Next support is seen at the January low of $23.26 and then at $23.00. Wyckoff's Market Rating: 7.0.
March N.Y. copper closed up 900 points at 416.75 cents today. Prices closed near the session high and hit another 6.5-month high today. The copper bulls have the solid overall near-term technical advantage. A three-month-old uptrend is in place on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 435.00 cents. The next downside price objective for the bears is closing prices below solid technical support at this week’s low of 392.35 cents. First resistance is seen at 420.00 cents and then at 425.00 cents. First support is seen at today’s low of 406.55 cents and then at 400.00 cents. Wyckoff's Market Rating: 8.0.