(Kitco News) - Gold and silver prices are solidly higher and not far below daily highs in midday 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 $30.60 at $2,713.10. March silver was up $1.089 at $31.435.
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%, month-on-monteh versus expectations for up 0.3%.
U.S. stock indexes were pushed sharply higher by the tamer U.S. inflation data.
Reports that Israel and Hamas have reached a ceasefire agreement did not dampen bullish enthusiasm for the safe-haven metals. It could be that traders on this day chose to focus on the positive aspect of better consumer demand for metals amid less risk aversion in the marketplace as Middle East tensions have de-escalated.
The key outside markets today see the U.S. dollar index lower but up from daily lows. Nymex crude oil futures prices are solidly up and trading around $79.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.7%--downticking after the tamer CPI 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 $30.00. First resistance is seen at $31.845 and then at $32.00. Next support is seen at $31.00 and then at the overnight low of $30.37. Wyckoff's Market Rating: 5.5.
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