(Kitco News) - Gold and silver prices are solidly higher and near daily highs in early U.S. trading Wednesday. Both metals were up overnight but got a further boost following another U.S. inflation report that came in not too hot. February gold was last up $31.50 at $2,713.00. March silver was up $0.534 at $30.87.
Today’s U.S. data point of the week, the consumer price index for December, saw CPI up 2.9%, year-on-year, right in line with market expectations and compares to up 2.7% in the November report. The core CPI came in a bit lighter than expected, at up 0.2% versus expectations for up 0.3%, month on month.
U.S. stock indexes are set to open solidly up when the New York day session begins, and boosted by the tamer U.S. inflation data.
In overnight news, the Japanese yen rallied sharply Wednesday on fresh speculation the Bank of Japan will raise interest rates at its next monetary policy meeting late next week.
The U.K.’s consumer price index came in a bit below market expectations, boosting hopes of a resumption of rate cuts when the Bank of England meets early next month.
Global oil markets will see a smaller surplus this year than previously expected due to stronger demand and new risks to supply, said the International Energy Agency.
Respected broker SP Angel today reported in an email dispatch that China’s bond yields have been dropping on deflation concerns, rising trade surpluses and weak domestic consumption.
“This trend has combined with Chinese retail investors seeking investment alternatives from the property market and downbeat equities. Additionally, China’s central bank, alongside Russa and Turkey predominantly, added significant China bond holdings in 2024.”
The key outside markets today see the U.S. dollar index solidly lower in the wake of the not-too-hot U.S. CPI. Nymex crude oil futures prices are firmer and are trading around $78.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.706%--downticking after the CPI report.
Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the Empire State manufacturing survey, real earnings, the Federal Reserve’s beige book and the weekly DOE liquid energy stocks report.
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 this week’s high of $2,723.80 and then at the January high of $2,735.00. First support is seen at $2,700.00 and then at today’s low of $2,685.40. Wyckoff's Market Rating: 7.0.
March silver futures bulls have the slight overall near-term technical advantage. 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 this week’s high of $31.465 and then at the January high of $31.845. Next support is seen at the overnight low of $30.37 and then at this week’s low of $30.115. Wyckoff's Market Rating: 5.5.
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