(Kitco News) - Gold and silver prices are just mildly higher in quieter early U.S. trading Thursday. The precious metals markets are getting a modest boost from a lower U.S. dollar index and a dip in U.S. Treasury yields today. April gold was last up $2.50 at $1,893.20 and March silver was up $0.025 at $22.445.
Said broker SP Angel in an email dispatch this morning: “Fed officials, including New York Fed President Williams and Atlanta Fed President Bostic, both called for a higher peak rate following the major upside surprise to U.S. Jobs last Friday. Focus now turns to the U.S. CPI data release next week on Tuesday. Expect a further ease in inflationary data to support risk assets and weigh on the dollar, likely supporting gold. However, if U.S. CPI comes in hotter-than-expected, we expect the both U.S. Treasury yields and the U.S. dollar to rally as markets may potentially reprice their expectations of the Fed terminal rate higher, weighing on non-interest-bearing gold. The market currently expects Fed rate hikes to peak at 5.1% versus their current level of 4.6%, before pivoting around August.”
Global stock markets were mostly up overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins.
In overnight news, Sweden's central bank raised its main interest rate by 0.5%, to 3.0%.
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| Gold is still overvalued as markets ignore growing central bank risks - Quant Insight's Huw Roberts |
The key outside markets see the U.S. dollar index lower. The yield on the benchmark U.S. 10-year Treasury note is presently fetching around 3.596%. Meantime, Nymex crude oil futures prices are modestly up and trading around $78.75 a barrel.
U.S. economic data due for release Thursday is light and includes the weekly jobless claims 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 pattern has formed 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 $1,880.00 and then at this week's low of $1,873.20. 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 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.
