(Kitco News) - Gold and silver prices are just a bit firmer in midday U.S. trading Tuesday. Both metals got a very mild boost following a U.S. inflation report that came in cooler than expected. February gold was last up $3.40 at $2,681.90. March silver was up $0.086 at $30.405.
Today’s U.S. data point was the producer price index report for December. PPI came in cooler than expected at up 0.2%, month-on month, versus expectations of up 0.4%. The core PPI (excluding food and energy) was also cooler than forecast, at unchanged, month-on-month, versus expectations for up 0.3%.
Buying interest in the safe-haven metals has been somewhat limited recently by reports that Israel and Hamas are close to a ceasefire agreement that includes Hamas releasing Israeli hostages.
The U.S. data point of the week is the consumer price index for December, due out Wednesday. CPI is seen coming in at up 2.9%, year-on-year, versus up 2.7% in the November report. The core CPI is seen rising 0.2% after four straight months of 0.3% increases, according to a Bloomberg survey. The core CPI is forecast to have risen 3.3%, year-on-year, unchanged from readings from the previous three months.
The key outside markets today see the U.S. dollar index lower on a corrective pullback after hitting a two-plus year high Monday. Nymex crude oil futures prices are lower after hitting a six-month high Monday and are trading around $78.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.799%.
Other U.S. economic data due for release Tuesday includes the Johnson Redbook weekly retail sales report, the NFIB small business index, and the RCM/TIPP economic optimism index.
Technically, February gold futures bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the December high of $2,761.30. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the December low of $2,596.70. First resistance is seen at $2,700.00 and then at this week’s high of $2,723.80. First support is seen at today’s low of $2,672.00 and then at $2,660.00. Wyckoff's Market Rating: 6.5.
March silver futures bulls and bears are on a level overall near-term technical playing field. Silver bulls' next upside price objective is closing prices above solid technical resistance at the January high of $31.84. The next downside price objective for the bears is closing prices below solid support at the December low of $29.145. First resistance is seen at $30.75 and then at $31.00. Next support is seen at today’s low of $30.115 and then at $30.00. Wyckoff's Market Rating: 5.0.
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