Gold, Silver Gain On Lower USDX, Weak U.S. Inflation
(Kitco News) – Gold and silver prices are moderately higher in early-afternoon U.S. trading Tuesday, on some short covering by the shorter-term futures traders and perceived bargain hunting following recent pressure. A lower U.S. dollar index on this day and a mild U.S. inflation report are also friendly for the precious metals markets. Gold and silver bulls have regained some technical strength this week. April gold futures were last up $6.90 an ounce at $1,298.00. May Comex silver was last up $0.126 at $15.40 an ounce.
The key U.S. economic data point early this week was today’s consumer price index report for February, which came in at up 0.2% from January and was in line with market expectations. On an annual basis, CPI was up 1.5%–the lowest reading in 2.5 years. This continues a theme of low and non-problematic inflation in the major world economies, which is allowing the central banks to keep interest rates low. The gold and silver markets up-ticked just a bit following the report, which favored the monetary policy doves.
Asian and European stock markets were mixed today. U.S. stock indexes were firmer at midday. There is not much trader and investor anxiety in the world marketplace at present, which is bullish for world stock markets but bearish for the safe-haven metals.
British lawmakers vote late today on another Brexit plan offered by Prime Minister Theresa May. Despite some last-minute concessions from the European Union, the U.K. Parliament is expected to vote down May’s plan.
The other outside market today sees Nymex crude oil prices firmer and trading near $57.00 a barrel.
Technically, April gold futures prices closed near the session high today. The bulls have the overall near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,320.00. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at $1,275.00. First resistance is seen at last week’s high of $1,301.30 and then at $1,310.00. First support is seen at this week’s low of $1,290.60 and then at $1,285.60. Wyckoff’s Market Rating: 6.0
May silver futures prices closed near mid-range today. The silver bulls have regained the overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $15.75 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.75. First resistance is seen at today’s high of $15.49 and then at $15.545. Next support is seen at this week’s low of $15.225 and then at $15.00. Wyckoff’s Market Rating: 6.0.
May N.Y. copper closed up 275 points at 292.85 cents today. Prices closed near mid-range today. The copper bulls have the overall near-term technical advantage. Prices are in a 10-week-old uptrend on the daily bar chart. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the February high of 297.75 cents. The next downside price objective for the bears is closing prices below solid technical support at 275.00 cents. First resistance is seen at today’s high of 295.70 cents and then at 297.75 cents. First support is seen at today’s low of 2.90.50 cents and then at last week’s low of 287.45 cents. Wyckoff’s Market Rating: 6.5.