(Kitco News) - Gold prices are solidly lower and silver slightly down in midday U.S. trading Thursday. Another slightly higher-than-expected U.S. inflation reading was bearish for the precious metals, as it boosted the U.S. dollar index and U.S. Treasury yields. April gold was last down $20.80 at $2,160.50. May silver was last down $0.126 at $25.04.
It was 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 and investors got another dose of warmer inflation data today. The February producer price index report for February came in at up 0.6%, which was double the forecast for up 0.3%, month-on-month, and follows a 0.3% rise in the January report. The warmer PPI report was somewhat offset by slightly weaker-than-expected U.S. retail sales numbers for February. Still, recently warm U.S. inflation readings may prevent the Federal Reserve from cutting interest rates as soon as it had just recently anticipated.
Asian and European stock markets were mixed in overnight trading. U.S. stock index futures are weaker near midday.
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 solidly up. Nymex crude oil prices are higher and trading around $80.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 4.29%.
Technically, April 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 now formed on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $2,203.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,100.00. First resistance is seen at today’s high of $2,181.30 and then at Tuesday’s high of $2,190.80. First support is seen at this week’s low of $2,156.20 and then at $2.150.00. Wyckoff's Market Rating: 8.0.
May silver futures prices hit a three-month high early on today. The silver bulls have the firm overall near-term technical advantage. Silver bulls' next upside price objective is closing 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 today’s high of $25.37 and then at $26.00. Next support is seen at this week’s low of $24.22 and then at $24.00. Wyckoff's Market Rating: 6.5.
May N.Y. copper closed down 390 points at 402.10 cents today. Prices closed near the session low and hit an 11-month high early on. The copper bulls have the solid overall near-term technical advantage. Prices are in a steep four-week-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 415.00 cents. The next downside price objective for the bears is closing prices below solid technical support at this week’s low of 387.85 cents. First resistance is seen at today’s high of 408.10 cents and then at 410.00 cents. First support is seen at 400.00 cents and then at 395.00 cents. Wyckoff's Market Rating: 8.0.
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