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Gold, silver up ahead of busy U.S. data day

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(Kitco News) - Gold and silver prices are a higher in early U.S. trading Wednesday, supported by a bullish daily posture in the key outside markets: higher crude oil prices, a weaker U.S. dollar index and a dip in U.S. Treasury yields. February gold was last up $11.90 at $1,921.80 and March silver was up $0.287 at $24.355.

It’s a very active day for U.S. economic data Wednesday, including the weekly MBA mortgage applications survey, retail sales, the producer price index, the Johnson Redbook and chain store sales indexes, industrial production and capacity utilization, the NAHB housing market index, manufacturing and trade inventories and Treasury international capital data.

Global stock markets were mostly higher overnight. U.S. stock indexes are pointed toward steady to slightly higher openings when the New York day session begins. Corporate earnings reports are in focus this week.

In overnight news, the Japanese yen tumbled against the U.S. dollar as the Bank of Japan made a surprise move to keep its cap in the 10-year government bond yield at 0.5%. Many thought the BOJ would be hawkish and raise the cap. The BOJ move is an attempt to keep Japanese interest rates low, while global interest rates have been rising.

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The Euro zone consumer price index for December came in at up 9.2%, year-on-year, which was in line with market expectations.

The International Energy Agency said today that world oil demand will hit a record high this year as China’s economy is expected to see a jump in oil usage.

The key outside markets today see the U.S. dollar index lower. Nymex crude oil futures prices are higher and trading around $81.75 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.476%.  

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bulls have the solid overall near-term technical advantage. Prices are in a nine-week-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at $1,950.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,870.00. First resistance is seen at this week’s high of $1,931.80 and then at $1,950.00. First support is seen at $1,900.00 and then at $1,885.00. Wyckoff's Market Rating: 8.0

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls have the firm overall near-term technical advantage. A choppy, four-month-old uptrend on the daily bar chart has stalled out. Silver bulls' next upside price objective is closing March futures 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 this week’s high of $24.67 and then at the January high of $24.775. Next support is seen at today’s low of $23.93 and then at $23.50. 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.