(Kitco News) - Gold and silver prices are a bit lower in Midday U.S. trading Tuesday, but well up from their daily lows. Profit-taking from the shorter-term futures traders was featured early on after gold prices touched more record highs overnight. However, the gold bulls stepped in to buy the dip, on some perceived bargain hunting. April gold was last down $2.20 at $2,932.20. March silver prices were last down $0.171 at $32.32.
Federal Reserve Chairman Jerome Powell testified on U.S. monetary policy before the Senate Banking Committee in Washington this morning. Powell made no surprising, markets-moving remarks but the marketplace was somewhat assuaged he did not lean hawkish in his comments. Wednesday Powell will address the U.S. House Financial Services Committee.
U.S. stock indexes are mixed to slightly weaker at midday. Some risk aversion has crept back into the marketplace Tuesday. U.S. President Trump warned that tariffs on steel and aluminum “may go higher” after imposing a 25% levy on all imports of the metals starting in March. The European Union was quick to respond, vowing to take firm countermeasures. While he didn’t include exemptions for trading partners, Trump said he may consider a break for Australia.
The key outside markets today see the U.S. dollar index weaker. Nymex crude oil futures prices are higher and trading around $73.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.52%.
The U.S. data point of the week comes Wednesday with the consumer price index for January, seen up 2.9%, year-on-year. The “core” CPI, which excludes food and energy, is expected to come in up 3.1% annually.
Technically, April gold futures bulls have the strong 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 $3,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,800.00. First resistance is seen at $2,950.00 and then at today’s contract high of $2,968.50. First support is seen at $2,900.00 and then at this week’s low of $2,879.90. Wyckoff's Market Rating: 9.0.
March silver futures bulls have the overall near-term technical advantage amid a price uptrend in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $34.00. The next downside price objective for the bears is closing prices below solid support at $31.00. First resistance is seen at $32.00 and then at today’s high of $32.66. Next support is seen at the overnight low of $31.65 and then at $31.25. Wyckoff's Market Rating: 6.0.
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