(Kitco News) - Gold and silver prices are mildly higher in early U.S. trading Wednesday. The precious metals markets are getting a modest boost from friendly outside markets on this day that include a slightly higher U.S. dollar index and firmer crude oil prices. April gold was last up $1.80 at $1,886.40 and March silver was up $0.183 at $22.36.
The marketplace on Tuesday afternoon saw Fed Chairman Powell at a Washington, D.C. economic club meeting reiterate that U.S. inflation has started to come down but has a long way to drop to meet the Fed’s inflation objectives. Powell was pressed on last Friday’s strong jobs report possibly changing Fed policy to more hawkish, but Powell brushed that notion off, at first. However, at the end of his remarks he said more strong U.S. economic data could force the Fed to raise rates more than it expects at present. Stock and financial markets gyrated during and right after his comments but at the end of the day Tuesday, Powell’s remarks were deemed as not surprising and did not have a major, lasting impact on markets.
Global stock markets were mixed overnight. U.S. stock indexes are pointed toward weaker openings when the New York day session begins.
|
| People's Bank of China buys another 15 tonnes of gold in January, third straight month of buying |
The key outside markets see the U.S. dollar index weaker. The yield on the benchmark U.S. 10-year Treasury note is presently fetching around 3.6%. Meantime, Nymex crude oil futures prices are up and trading around $78.00 a barrel.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, monthly wholesale trade and the weekly DOE liquid energy stocks report.
![Live 24 hours gold chart [Kitco Inc.]](/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, the gold futures bulls still have the overall near-term technical advantage but have faded. A bear flag or pennant pattern appears to be forming on the daily bar chart. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at the February high of $1,975.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,850.00. First resistance is seen at $1,900.00 and then at $1,915.50. First support is seen at this week’s low of $1,873.20 and then at $1,850.00. Wyckoff's Market Rating: 6.0.
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
The silver bulls have the slight overall near-term technical advantage but have faded badly and need to show fresh power soon to keep their edge. Silver bulls' next upside price objective is closing March futures prices above solid technical resistance at $23.50. The next downside price objective for the bears is closing prices below solid support at $21.00. First resistance is seen at this week’s high of $22.635 and then at $23.00. Next support is seen at this week’s low of $22.065 and then at $22.00. Wyckoff's Market Rating: 5.5.
