(Kitco News) - Gold prices are modestly up and silver prices are solidly higher in the wake of a just-released U.S. inflation report that came in a bit cooler than expected. April gold was last up $4.60 at $2,925.70. May silver prices were last up $0.568 at $33.78.
The just-released U.S. data point of the week saw the consumer price index report for February come in at up 2.8%, year-on-year. The CPI report was seen coming in at up 2.9%, year-on-year, versus a rise of 3.0 in the January report. The producer price index report comes out Thursday and is seen up 0.3%, month-on-month, compared to a rise of 0.4% in the January report. The U.S. dollar index lost some of its overnight gains immediately following the CPI report’s release. The U.S. stock indexes added to overnight gains following CPI.
Asian and European stock markets were mixed overnight. U.S. stock indexes are pointed to solidly higher openings when the New York day session begins, on corrective bounces following recent selling pressure that pushed the major indexes to multi-month lows. Traders and investors are still anxious regarding the seemingly near-daily changes in U.S. trade tariffs policy, and the retaliations by U.S. trading partners. Reads a Wall Street Journal headline today: “Tariff drama drags on; stock markets need a return of Trump the dealmaker.”
The key outside markets today see the U.S. dollar index modestly higher. Nymex crude oil futures prices are higher and trading around $67.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.3%.
Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage survey, the weekly DOE liquid energy stocks report, real earnings and the monthly Treasury budget statement.
Technically, April gold futures bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $2,974.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at last week’s low of $2,844.10. First resistance is seen at the overnight high of $2,931.50 and then at last week’s high of $2,941.30. First support is seen at $2,900.00 and then at this week’s low of $2,882.50. Wyckoff's Market Rating: 7.5.
May silver futures bulls have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the February high of $34.56. The next downside price objective for the bears is closing prices below solid support at the February low of $31.365. First resistance is seen at $34.00 and then at $34.56. Next support is seen at the overnight low of $33.18 and then at $33.00. Wyckoff's Market Rating: 6.0.
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