Gold, silver rally amid weaker greenback, bullish charts
|Get all the essential market news and expert opinions in one place with our daily newsletter. Receive a comprehensive recap of the day's top stories directly to your inbox. Sign up here!|
(Kitco News) - Gold and silver prices are higher in midday U.S. trading Tuesday, supported by chart-based buying amid bullish technicals. A weaker U.S. dollar index and higher crude oil prices are also bullish outside market elements for the metals on this day. Traders are awaiting the next major data point, which is a U.S. inflation report Wednesday morning. June gold was last up $14.10 at $2,018.00 and May silver was up $0.288 at $25.20.
The U.S. data point of the week is Wednesday morning's consumer price index report for March, which is expected to show an annual rise of 5.1%, compared to a rise of 6.0% in the February report. A miss on the CPI print would likely cause higher price volatility in the immediate aftermath of the report.
In overnight news, China's inflation eased again in March. Consumer prices were up 0.7%, year-on-year, which is the lowest rate since September of 2021. Meantime, the International Monetary Fund has warned that higher global interest rates are just transitory and that low interest rates will likely return. A Barron's headline today reads: “The inflation wave may be cresting. What's next for Fed rates."
|Gold ETFs see first inflows in 10 months as banking crisis sparks safe-haven buying|
Global stock markets were mostly firmer overnight. U.S. stock indexes are mixed at midday. Risk appetite is slowly creeping back into the marketplace as traders and investors are gaining confidence the U.S. and European banking turmoil has passed.
The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are higher and trading around $81.50 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.4%.
Technically, June gold futures bulls have the solid overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart. Bulls' next upside price objective is to produce a close above solid resistance at the all-time high of $2,078.80, scored in March of 2022. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at $2,025.00 and then at the March high of $2,031.70. First support is seen at today's low of $2,003.70 and then at this week's low of $1,996.50. Wyckoff's Market Rating: 8.0
May silver futures bulls have the solid overall near-term technical advantage. Prices are in a steep four-week-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $27.50. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at last week's high of $25.295 and then at $25.50. Next support is seen at this week's low of $24.775 and then at $24.50. Wyckoff's Market Rating: 8.0.
May N.Y. copper closed up 415 points at 401.80 cents today. Prices closed near mid-range today. The copper bulls have the slight overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the March high of 417.45 cents. The next downside price objective for the bears is closing prices below solid technical support at the March low of 382.20 cents. First resistance is seen at today's high of 405.40 cents and then at 407.15 cents. First support is seen at this week's low of 396.30 cents and then at last week's low of 392.60 cents. Wyckoff's Market Rating: 5.5.