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(Kitco News) - Gold and silver prices are modestly higher but nearer the daily lows in midday U.S. trading Wednesday. Some profit-taking pressure from the shorter-term futures traders kicked in after both metals touched 13-month highs in the immediate aftermath of a tamer U.S. inflation report this morning. June gold was last up $4.20 at $2,023.20 and May silver is up $0.114 at $25.30.
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 initially dropped and the U.S. stock indexes rallied on the news. The U.S. dollar index sold off sharply. However, Treasury yields have up-ticked and the U.S. stock indexes have sold off as midday approaches. The rebound in bond yields after the CPI report helped to spur some profit taking in gold and silver. It appears the initial trader/investor euphoria over the tamer CPI report has quickly worn off. In fact, the core CPI reading actually up-ticked by 0.1%, to 5.6%, year-on-year, in the March report.
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| Gold price hits session highs as U.S. CPI sees annual inflation rising 5%, down sharply from 2020 highs |
The minutes of the last FOMC meeting are due out this afternoon.
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 $82.50 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.421%.
![Live 24 hours gold chart [Kitco Inc.]](/images/live/gold.gif?0.2924175530478188){kind=small}
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 the April low of $1,965.90. First resistance is seen at the March high of $2,031.70 and then at the April high of $2,049.20. First support is seen at today’s low of $2,015.70 and then at $2,000.00. Wyckoff's Market Rating: 8.5
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
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 $23.50. First resistance is seen at today’s high of $25.825 and then at $26.00. Next support is seen at $25.00 and then at this week’s low of $24.775. Wyckoff's Market Rating: 8.5.
May N.Y. copper closed up 165 points at 403.60 cents today. Prices closed nearer the session high 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 405.45 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.
