(Kitco News) - Gold and silver prices are modestly up in early U.S. trading Thursday, supported in part by a lower U.S. dollar index on this day and by stable U.S. Treasury yields. The FOMC minutes Wednesday afternoon leaned a bit hawkish, but that was not unexpected. April gold was last up $5.20 at $2,039.50. March silver was last up $0.226 at $23.125.
Asian and European stock markets were mixed but mostly firmer in overnight trading. Japan’s Nikkei stock index Thursday hit a record high for the first time in 34 years. U.S. stock index futures are set to open higher when the New York day session begins, with the S&P 500 futures hitting a new record high overnight.
In overnight news, the Euro zone reported its January consumer price index up 2.8%, year-on-year, which was in line with market expectations. Meantime, the Euro zone composite purchasing managers index (PMI) for February came in at 48.9, which was just above market expectations. A reading below 50.0 suggests contraction in the sector.
The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are near steady and trading around $78.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 4.307%.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the Chicago Fed national activity index, the U.S. flash manufacturing and services purchasing managers indexes, existing home sales and the weekly DOE liquid energy stocks report. Several Federal Reserve officials are also slated to speak today.
Technically, the gold futures bears have the slight overall near-term technical advantage. Prices are in a 2.5-month-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in April futures 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 $1,950.00. First resistance is seen at the overnight high of $2,045.50 and then at $2,050.00. First support is seen at Wednesday’s low of $2,030.90 and then at this week’s low of $2,023.90. Wyckoff's Market Rating: 4.5.
The silver bears have the overall near-term technical advantage. However, a nine-week-old downtrend on the daily bar chart has been negated to suggest a market bottom is in place. Silver bulls' next upside price objective is closing March futures prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at the February low of $21.975. First resistance is seen at last week’s high of $23.56 and then at $23.72. Next
support is seen at this week’s low of $22.79 and then at $22.50. Wyckoff's Market Rating: 4.0.
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