(Kitco News) - Gold and silver prices are solidly lower, with gold hitting a three-month low and silver a three-week low, following higher-than-expected U.S. inflation readings that fall into the camp of the U.S. monetary policy hawks, who want to see the Federal Reserve hold off on lowering U.S. interest rates. April gold was last down $25.90 at $2,007.10. March silver was last down $0.637 at $22.12.
The U.S. economic data point of the day, if not the week, saw the consumer price index report for January come in at up 3.1%, year-on-year, compared to forecasts for up 2.9% and compares to a rise of 3.4% in the December report. The “core” CPI (excluding food and energy) for January also came in warmer than expected at up 3.9%, year-on-year. The U.S. stock indexes saw heavy selling pressure, U.S. Treasury yields rose and the U.S. dollar index rallied on the CPI news.
Asian and European stock markets were mixed to weaker in overnight trading. China is celebrating its Lunar New Year holiday this week. Many China markets are closed much of this week for the annual holiday.
The key outside markets today see the U.S. dollar index solidly up and hitting a three-month high today. Nymex crude oil prices are higher and trading around $78.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 4.287%--well up from what was seen just before the release of the CPI report.
Technically, April gold futures prices hit a three-month low today. The bears have gained the overall near-term technical advantage. Prices are in a nine-week-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the February high of $2,083.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at $2,023.30 and then at $2,035.00. First support is seen at today’s low of $2,002.80 and then at $2,000.00. Wyckoff's Market Rating: 4.0.
March silver futures prices hit a three-week low today. The silver bears have the overall near-term technical advantage. A nine-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 $23.445. The next downside price objective for the bears is closing prices below solid support at the October low of $21.17. First resistance is seen at $22.50 and then at $23.00. Next support is seen at $22.00 and then at $21.75. Wyckoff's Market Rating: 3.0.
March N.Y. copper closed up 15 points at 372.55 cents today. Prices closed nearer the session low today. The copper bears have the overall near-term
technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 390.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the October low of 355.75 cents. First resistance is seen at 376.30 cents and then at 380.00 cents. First support is seen at last week’s low of 365.50 cents and then at 362.60 cents. Wyckoff's Market Rating: 3.0.
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