(Kitco News) - Gold prices are a bit higher in early U.S. trading Thursday, as the bulls were again boosted a bit by another tame U.S. inflation report. Silver prices are a bit weaker on a routine corrective pullback from this week’s good gains. April gold was last up $9.50 at $2,955.30. May silver prices were last down $0.083 at $33.66.
The just-released U.S. producer price index report for February came out unchanged, month-on-month, and was seen coming in up 0.3%, month-on-month. The unchanged reading compares to a rise of 0.4% in the January report. The “core” PPI, excluding food and energy, came in down 0.1% in February, versus expectations for up 0.3%. Wednesday’s U.S. consumer price index report also came in cooler than expected. Today’s cool PPI did not have a major impact on the marketplace.
Asian and European stock markets were mixed overnight. U.S. stock indexes are pointed to weaker openings when the New York day session begins. Risk aversion remains elevated this week amid concerns deteriorating trade relations between the U.S. and its major trading partners could cause a global economic recession.
The U.S. government is heading for the first shutdown since December of 2018 as U.S. Senate Democrats indicated they will not support a Republican stop-gap funding bill.
Broker SP Angel reports a rally in the Japanese yen against the U.S. dollar is upending the associated yen carry trade, causing more selling of U.S. equities.
The key outside markets today see the U.S. dollar index higher. Nymex crude oil futures prices are slightly lower and trading around $67.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.341%.
Other U.S. economic data due for release Thursday includes the weekly jobless claims report.
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 $2,958.90 and then at $2,974.00. First support is seen at the overnight low of $2,942.20 and then at Wednesday’s low of $2,911.00. Wyckoff's Market Rating: 8.0.
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 Wednesday’s low of $33.18 and then at $33.00. Wyckoff's Market Rating: 6.0.
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