(Kitco New) - Gold and silver prices are lower, have lost overnight gains and are near their daily lows in early U.S. trading Tuesday, following a warmer-than-expected U.S. inflation report that falls 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 $4.50 at $2,028.70. March silver was last down $0.147 at $22.61.
The U.S. economic data point of the day Tuesday 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 came in at up 3.9%, year-on-year. The U.S. stock indexes saw selling pressure, U.S. Treasury yields rose and the U.S. dollar index rallied on the CPI news.
Other data out today includes the weekly Johnson Redbook retail sales report, the NFIB small business optimism index and real earnings.
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. U.S. stock index futures are set to open lower today on profit taking after hitting record highs Monday.
The key outside markets today see the U.S. dollar index solidly higher. Nymex crude oil prices are higher and trading around $77.75 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, the gold futures bulls have the slight overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in April futures 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 the overnight high of $2,047.30 and then at last week’s high of $2,059.10. First support is seen at this week’s low of $2,025.40 and then at the January low of $2,023.30. Wyckoff's Market Rating: 5.5.
The silver bears have the overall near-term technical advantage. Prices are in a nine-week-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing March futures prices above solid technical resistance at $24.00. 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 this week’s high of $23.15 and then at
$23.445. Next support is seen at last week’s low of $22.195 and then at $22.00. Wyckoff's Market Rating: 3.5.
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