(Kitco News) - Gold and silver prices are solidly lower in early U.S. trading Wednesday. Gold hit a nine-week low and silver a 2.5-month low overnight. Precious metals traders were reminded Tuesday that the Federal Reserve will likely continue to raise U.S. interest rates in the coming months, which has rallied the U.S. dollar index and pressured the crude oil market. April gold was last down $20.20 at $1,845.20 and March silver was down $0.328 at $21.55.
Global stock markets were mixed overnight, with Asian shares mostly lower and European shares mostly higher. U.S. stock indexes are pointed toward weaker openings when the New York day session begins. The marketplace is a bit unsettled at mid-week, following a U.S. consumer price index report on Tuesday that was just slightly above market expectations. The takeaway from Tuesday’s CPI report appears to be that the Federal Reserve has more heavy lifting to do in the coming months to get inflation down to the level the Fed desires, which is around 2% annually. The U.S. producer price index report is Thursday.
The U.S. data point of the day Wednesday is the retail sales report for January, which is expected to come in up 1.9% from December, following a decline of 1.1% in December from November.
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The key outside markets see the U.S. dollar index solidly higher. Nymex crude oil futures prices are modestly lower and trading around $78.50 a barrel. The yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.742%.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the Empire State manufacturing survey, retail sales, industrial production and capacity utilization, the NAHB housing index, manufacturing and trade inventories, Treasury international capital data, 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 slight overall near-term technical advantage but have faded badly. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at today’s high of $1,870.90 and then at this week’s high of $1,881.60. First support is seen at the overnight low of $1,841.50 and then at $1,830.00. Wyckoff's Market Rating: 5.5
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
The silver bears have the overall near-term technical advantage. Prices are in a fledgling downtrend on the daily bar chart. Silver bulls' next upside price objective is closing March futures prices above solid technical resistance at $23.00. The next downside price objective for the bears is closing prices below solid support at $21.00. First resistance is seen at the overnight high of $21.875 and then at this week’s high of $22.085. Next support is seen at today’s low of $21.41 and then at $21.00. Wyckoff's Market Rating: 4.0.
