(Kitco News) - Gold and silver prices are higher and hit four-week highs in early U.S. trading Thursday. Both precious metals have been boosted this week following tame U.S. inflation reports that have dampened the U.S. dollar index and sent U.S. Treasury yields down a bit. February gold was last up $16.60 at $2,734.40. March silver was up $0.259 at $31.79.
Asian and European stock markets were mixed to firmer overnight. U.S. stock indexes are set to open mixed to firmer when the New York day session begins. The U.S. stock indexes have rallied this week, due in part to tame U.S. inflation reports released this week.
In overnight news, Israel said Hamas is creating a last-minute crisis and risking the Gaza ceasefire deal. Israel said Hamas reneged on parts of the ceasefire and hostage-release deal.
The Chinese 10-year bond price rallied again Thursday, with the yield sliding to 1.65%. Chinese safe-haven investors continue to buy bonds and gold to diversify away from their weakening currency, the yuan, and the ongoing bear market in property and equities, said broker SP Angel this morning in an email.
The key outside markets today see the U.S. dollar index slightly up. Nymex crude oil futures prices are lower and are trading around $79.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.674%. The yield on the 10-year Treasury “is currently comfortably below the 14-month high from earlier this week. Perhaps more importantly, inflation expectations suggest that pricing pressures should continue to ease this year. If so, that should dampen a potentially large headwind for equities, particularly if bond yields start to trend down from current levels,” said David Morrison of Trade Nation in an email dispatch.
A busy U.S. economic data day Thursday includes the weekly jobless claims report, the Philadelphia Fed business survey, retail sales, import and export prices, manufacturing and trade inventories, and the NAHB housing index.
Technically, February gold futures bulls have the overall near-term technical advantage. Prices are trending up on the daily bar chart. 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 $2,650.00. First resistance is seen at the overnight high of $2,740.50 and then at $2,750.00. First support is seen at the overnight low of $2,720.40 and then at $2,700.00. Wyckoff's Market Rating: 7.0.
March silver futures bulls have the overall near-term technical advantage. Prices are now trending up on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the December high of $33.33. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen at the overnight high of $31.985 and then at $32.50. Next support is seen at the overnight low of $31.535 and then at $31.00. Wyckoff's Market Rating: 6.0
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