(Kitco News) - Gold and silver prices are lower in midday U.S. trading Thursday, with gold hitting a four-week low and silver a two-month low. Today’s losses came in the wake of U.S. inflation report that came in a bit hotter than expected, rallying the U.S. dollar index and prompting an up-tick in U.S. Treasury yields. February gold was last down $6.30 at $2,021.40. March silver was last down $0.311 at $22.75.
The U.S. December consumer price index report showed a rise of 3.4%, year-on-year, versus expectations of up 3.3% and compares to a rise of 3.1% in the November report. The core CPI was up 3.9% versus expectations of up 3.8%, year-on-year. That data falls slightly into the camp of the U.S. monetary policy hawks, who want the Federal Reserve to keep its monetary policy tighter for longer. The December producer price index report is out on Friday morning.
Asian and European stock markets were mostly higher overnight. U.S. stock index futures are down and lost overnight gains following the CPI report. The U.S. stock index bulls had rebounded this week, following selling pressure the first week of the new year.
The key outside markets today see the U.S. dollar index higher. Nymex crude oil prices are solidly up and trading around $73.25 a barrel. Meantime, the yield on the benchmark U.S. Treasury 10-year note is presently fetching 4.05% and up-ticked following the CPI data.
Technically, February gold futures prices hit a four-week low today and scored a bearish “outside day” down on the daily bar chart. The bulls have the overall near-term technical advantage but are fading a bit. Prices are still in a three-month-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $2,100.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at $2,040.00 and then at $2,050.00. First support is seen at today’s low of $2,017.60 and then at $2,000.00. Wyckoff's Market Rating: 6.5.
March silver futures prices hit a two-month low today. The silver bears have the overall near-term technical advantage. A six-week-old downtrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at the November low of $22.26. First resistance is seen at $23.00 and then at today’s high of $23.40. Next support is seen at today’s low of $22.63 and then at $22.50. Wyckoff's Market Rating: 3.5.
March N.Y. copper closed down 25 points at 377.85 cents today. Prices closed nearer the session low today. The copper bears have the slight overall near-term technical advantage. A choppy, 2.5-month-old uptrend on the daily bar chart has been negated. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the December high of 397.40 cents. The next downside price objective for the bears is closing prices below solid technical support at 365.00 cents. First resistance is seen at this week’s high of 384.05 cents and then at 388.00 cents. First support is seen at this week’s low of 375.40 cents and then at the December low of 372.90 cents. Wyckoff's Market Rating: 4.5.
Try out my “Markets Front Burner” email report. My next one is due out today and is going to be entitled, “When China sneezes...” Front Burner is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. And it’s free! Sign up to my new, free weekly Markets Front Burner newsletter, at https://www.kitco.com/services/markets-front-burner.html .
