(Kitco News) - Gold prices are higher in midday trading Thursday despite another U.S. inflation report that came in warmer than expected. Silver prices are slightly down. April gold was up $16.20 at $2,944.00. March silver prices were last down $0.095 at $32.69.
This morning’s U.S. producer price index report for January showed a rise 3.4%, year-on-year, versus expectations for an annual rise of 3.2% and follows an upwardly revised 3.5% rise in the December PPI report. Month-on-month, PPI was up 0.4% versus expectations for a 0.3% rise and follows an upwardly revised gain of 0.5%, month-on-month, in the December report. The “core” PPP (excluding food and energy) came in up 0.3%, month-on-month, right in line with forecasts and compares to a zero percent reading in the January report. The warmer PPI report follows a hot consumer price index report for January, released on Wednesday.
The gold market has at times recently been pushing aside daily bearish outside markets and negative economic reports. That’s a sign of still-strong safe-haven demand, including from some of the world’s central banks, for the precious yellow metal amid uncertainty and anxiety about new U.S. trade tariffs that could dent global economic growth.
The key outside markets today see the U.S. dollar index lower. Nymex crude oil futures prices are slightly lower and trading around $71.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.533%.
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 today’s high of $2,950.30 and then at the contract high of $2,968.50. First support is seen at today’s low of $2,925.80 and then at $2,900.00. 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 the $33.00 and then at the December high of $33.33. Next support is seen at $32.50 and then at $32.00. Wyckoff's Market Rating: 6.5.
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