(Kitco News) - Gold and silver prices are sharply lower near midday Wednesday, with gold hitting a six-week low and silver a four-week low. The heavy losses came in the wake of a surprisingly hot U.S. inflation report this morning. Worries about rising inflation due to the Middle East war just got worse today. April gold was last down $129.00 at $4,879.20. May silver prices were down $2.786 at $77.08.
U.S. producer prices rose 0.7% month-over-month in February 2026, above the 0.5% in January and much higher than forecasts for up 0.3%. That’s the biggest increase in producer prices in seven months, with goods prices soaring 1.1%, the most since August 2023. The core PPI (minus food and energy) increased 0.5%, after a 0.8% rise in January but above forecasts for up 0.3%. On an annual basis, headline producer inflation jumped to 3.4%, the highest in a year, compared to 2.9% in January and forecasts it would remain at 2.9%. Core producer inflation also jumped to 3.9%.
Traders and investors this afternoon will be looking to Federal Reserve Chair Jerome Powell for insight on how the U.S. central bank is weighing risks to the economy and inflation amid war in the Middle East. Fed officials are expected to keep U.S. interest rates steady and release fresh economic projections that could reveal how they're interpreting recent economic data and geopolitical events. Powell will hold a press conference early this afternoon, where he will likely emphasize that Fed officials need more time to see how long the U.S. conflict with Iran lasts and to assess how it might impact economic growth and inflation. Traders and investors will be especially interested in Powell’s comments on today’s hot U.S. PPI report.
The key outside markets today see the U.S. dollar index up, with Nymex crude oil prices higher and trading around $99.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.2 percent.
Note: The gold market operates through two primary pricing mechanisms. The first is the spot market, which quotes prices for on-the-spot purchase and immediate delivery. The second is the futures market, which sets prices for delivery at a future date. Due to year-end positioning market liquidity, the December gold futures contract is currently the most actively traded on the CME.
Technically, April gold futures bulls’ next upside price objective is to produce a close above solid resistance at last week’s high of $5,248.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $4,670.00. First resistance is seen at $5,000.00 and then at this week’s high of $5,049.40. First support is seen at today’s low of $4,837.10 and then at $4,800.00. Wyckoff's Market Rating: 5.0.
May silver futures bulls see their next upside price objective is closing prices above solid technical resistance at $90.00. The next downside price objective for the bears is closing prices below solid support at $72.405. First resistance is seen at $80.00 and then at this week’s high of $82.76. Next support is seen at today’s low of $75.635 and then at $72.50. Wyckoff's Market Rating: 5.0.
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