(Kitco News) - Gold prices are a bit higher and silver near steady in early U.S. trading Thursday. Both precious metals continue to be supported by safe-haven demand and bullish technical factors. The path of least resistance for gold and silver prices remains sideways to higher. June gold was last up $5.90 at $2,354.30. May silver was last down $0.012 at $28.04.
Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed to toward lower openings when the New York day session begins, on follow-through selling from Wednesday’s solid losses following a hotter U.S. consumer price index report Wednesday morning that threw into further question whether the Federal Reserve will be able to cut interest rates this year. On tap today is the producer price index report for March, seen coming in at up 0.3% from February and compares to a 0.6% rise in the February report.
The European central bank is meeting on its monetary policy and will soon announce its results.
China got some inflation data Thursday that highlighted its deflationary price pressures. Its CPI in March was up 0.1% versus up 0.7% in February and a 0.4% rise that was expected. China’s PPI was reported down 2.8% in March versus down 2.7% February and a 2.8 decline that was forecast. All of those figures were year-on-year. These figures are likely to see Chinese monetary and fiscal authorities step up their economic stimulus measures.
In other news, Bloomberg reported its sources are saying Iran or its proxies could launch a retaliatory military strike against Israel in the coming days, after an Israeli air strike killed some top Iranian military officials in Syria a couple weeks ago. This news is likely fueling some fresh safe-haven buying in gold and silver late this week.
The key outside markets today see the U.S. dollar index a bit higher after its strong rally to a 4.5-month high Wednesday rallying after the hotter U.S. CPI report. Nymex crude oil prices are weaker and trading around $85.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 4.57%.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the PPI report, and monthly U.S. chain store sales.
Technically, the gold futures bulls have the strong overall near-term technical advantage. A six-week-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at $2,400.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,300.00. First resistance is seen at today’s high of $2,364.10 and then at the contract high of $2,384.50. First support is seen at Wednesday’s low of $2,337.10 and then at this week’s low of $2,321.70. Wyckoff's Market Rating: 8.5.
The silver bulls have the strong overall near-term technical advantage. Prices are in an accelerating seven-week-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing May futures prices above solid technical resistance at $30.00. The next downside price objective for the bears is closing prices below solid support at $26.40. First resistance is seen at $28.44 and then at this week’s high of $28.655. Next support is seen at Wednesday’s low of $27.64 and then at $27.50. Wyckoff's Market Rating: 8.0.
(Hey! My “Markets Front Burner” weekly email report is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. Plus, I’ll throw in an educational feature to move you up the ladder of trading/investing success. And it’s free! Email me at jim@jimwyckoff.com and I’ll add your email address to my Front Burner list.)
