(Kitco News) - Gold prices are sharply up and hit all-time record highs Thursday. Continued safe-haven demand amid global trade tensions and another tame U.S. inflation report are boosting gold and silver prices late this week. April gold was last up $43.60 at $2,990.30. May silver prices hit a 4.5-month high today and were last up $0.532 at $34.30.
Today’s 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%. This follows Wednesday’s U.S. consumer price index report that also came in cooler than expected.
U.S. stock indexes are lower at midday. 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.
The key outside markets today see the U.S. dollar index slightly higher. Nymex crude oil futures prices are lower and trading around $66.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.3%.
Technically, April gold futures bulls have the strong overall near-term technical advantage. 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 this week’s low of $2,882.50. First resistance is seen at today’s contract and record high of $2,998.50 and then at $3,000.00. First support is seen at $2,974.00 and then at today’s low of $2,942.20. Wyckoff's Market Rating: 9.0.
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 $35.00. The next downside price objective for the bears is closing prices below solid support at this week’s low of $32.215. First resistance is seen at today’s high of $34.68 and then at $35.00. Next support is seen at $34.00 and then at today’s low of $33.435. Wyckoff's Market Rating: 7.0.
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