(Kitco News) - Gold prices are lower in early U.S. trading Thursday, while silver is slightly up and hit a three-month high overnight. Metals traders were awaiting an important batch of U.S. economic reports due out Thursday morning. April gold was last down $7.10 at $2,173.60. May silver was last up $0.084 at $25.24.
It’s indeed a heavy U.S. economic report schedule today. After Tuesday’s U.S. consumer price index report for February that was warmer than expected, traders are now focused on Thursday’s February producer price index report. PPI in February is seen coming in at up 0.3%, month-on-month, following a 0.3% rise in the January report. More warm U.S. inflation readings in the coming weeks may prevent the Federal Reserve from cutting interest rates as soon as it had just recently anticipated.
Other U.S. economic reports out Thursday include retail sales, the weekly jobless claims report, and manufacturing and trade inventories.
Asian and European stock markets were mixed in overnight trading. U.S. stock index futures are set to open higher when the New York day session begins.
Metals traders are taking note of the surge in copper prices this week, with nearby copper futures hitting an 11-month high. LME copper prices rose to $8,900 per metric ton, also the highest in almost a year. Bloomberg reported a $15 million trade in December copper futures calls options. Broker SP Angel today said reports suggested 19 smelters in China said they are exploring processing cuts.
The key outside markets today see the U.S. dollar index slightly up. Nymex crude oil prices are higher and trading around $80.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 4.194%.
Technically, the gold futures bulls have the solid overall near-term technical advantage. A steep four-week-old uptrend is in place on the daily bar chart. A bullish pennant pattern has also formed on the daily bar chart. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at $2,250.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,100.00. First resistance is seen at $2,190.80 and then $2,200.00. First support is seen at Wednesday’s low of $2,161.30 and then at this week’s low of $2,156.20. Wyckoff's Market Rating: 8.0.
The silver bulls have the firm overall near-term technical advantage. Prices hit a three-month high overnight. Silver bulls' next upside price objective is closing May futures prices above solid technical resistance at the December high of $26.575. The next downside price objective for the bears is closing prices below solid support at $23.50. First resistance is seen at the overnight high of $25.37 and then at $25.50. Next support is seen at $25.00 and then at $24.50. Wyckoff's Market Rating: 7.0.
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