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Gold, silver see solid price gains after tamer U.S. inflation data

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(Kitco News) - Gold and silver prices are sharply higher and hitting new daily highs in early U.S. trading Wednesday, following a U.S. inflation report that came in just a bit tamer than market expectations. Gold and silver hit a 13-month highs today. The powerful gold market bulls are eyeing pushing prices to a new record high. The present all-time peak for the yellow metal is $2,078.80, basis nearby Comex futures. June gold was last up $23.90 at $2,043.00 and May silver is up $0.414 at $25.70.

The U.S. data point of the week saw Wednesday morning’s consumer price index report for March come in at up 5.0%, year-on-year, compared to market expectations for a rise of 5.1%. The CPI rose 6.0% in the February report. Today’s CPI report continues a downward trajectory on consumer inflation and falls into the camp of the U.S. monetary policy doves, who want to see the Federal Reserve back off on its policy tightening. U.S. Treasury yields dropped and the U.S. stock indexes rallied on the news. The U.S. dollar index sold off sharply.

The minutes of the last FOMC meeting are also due out this afternoon.

Global stock markets were mixed but mostly higher overnight. U.S. stock indexes are pointed toward solidly higher openings when the New York day session begins.

The key outside markets today see the U.S. dollar index sharply lower. Nymex crude oil prices are up, hit a 2.5-month high and trading around $82.25 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.365%.

IMF: Global economy to see weakest growth since 1990 as chances of 'hard landing' surge

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

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bulls have the solid overall near-term technical advantage. Prices are in an uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at the record high of $2,078.80, basis nearby futures. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the April low of $1,965.90. First resistance is seen at the April high of $2,049.20 and then at $2,078.80. First support is seen at the overnight low of $2,018.40 and then at Tuesday’s low of $2,003.70. Wyckoff's Market Rating: 8.5

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls have the solid overall near-term technical advantage. Prices hit a 12-month high overnight and are in a steep uptrend on the daily bar chart. Silver bulls' next upside price objective is closing May futures prices above solid technical resistance at $27.50. The next downside price objective for the bears is closing prices below solid support at $23.50. First resistance is seen at $26.00 and then at $26.25. Next support is seen at the overnight low of $25.175 and then at $25.00. Wyckoff's Market Rating: 8.5.

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.