Gold and Silver Prices Rise on Inflation Report
Gold prices are higher and silver prices up just a bit in midday trading Thursday. The metals market bulls were somewhat assuaged today by a second U.S. inflation report of the week that came in just a bit tamer than market expectations. Both precious metals continue to be supported by safe-haven demand and bullish technical factors. June gold was last up $15.10 at $2,363.70. May silver was last up $0.043 at $28.095.
Today’s U.S. producer price index report for March came in a bit tamer, at up 0.2% from February, compared to expectations of up 0.3% and compares to a 0.6% rise in the February report from January.
Market Conditions and Central Bank Decisions
U.S. stock indexes are mixed at midday after strong selling Wednesday following a hotter U.S. consumer price index report Wednesday morning that threw into further question whether the Federal Reserve will be able to cut interest rates this year. The European central bank met for its regular monetary policy meeting today and made no changes in interest rates.
Global Economic Indicators
China got some inflation data Thursday that highlighted its deflationary price pressures. Its CPI in March was up 0.1% versus up 0.7% in February and a 0.4% rise that was expected. China’s PPI was reported down 2.8% in March versus down 2.7% February and a 2.8 decline that was forecast. All of those figures were year-on-year. These figures are likely to see Chinese monetary and fiscal authorities step up their economic stimulus measures.
Geopolitical Tensions Impacting the Market
Bloomberg reported its sources are saying Iran or its proxies could launch a retaliatory military strike against Israel in the coming days, after an Israeli air strike killed some top Iranian military officials in Syria a couple weeks ago. This news is likely fueling some fresh safe-haven buying in gold and silver late this week.
Key Outside Markets and Technical Analysis
The key outside markets today see the U.S. dollar index higher and hit a 4.5-month high today, following the hotter U.S. CPI report Wednesday morning. Nymex crude oil prices are weaker and trading around $85.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching around 4.6%.
Gold and Silver Technical Analysis
Technically, June gold futures prices hit a contract and record high Tuesday. The bulls have the strong overall near-term technical advantage. A seven-week-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $2,400.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,250.00. First resistance is seen at the contract high of $2,384.50 and then at $2,400.00. First support is seen at today’s low of $2,343.10 and then at this week’s low of $2,321.70. Wyckoff’s Market Rating: 9.0.
May silver futures bulls have the solid overall near-term technical advantage. An accelerating seven-week-old price uptrend is in place on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $30.00. The next downside price objective for the bears is closing prices below solid support at $26.40. First resistance is seen at today’s high of $28.29 and then at this week’s high of $28.655. Next support is seen at $27.64 and then at $27.50. Wyckoff’s Market Rating: 8.0
May N.Y. copper closed down 385 points at 424.35 cents today. Prices closed nearer the session low and saw profit taking after hitting a 14-month high Wednesday. The copper bulls have the solid overall near-term technical advantage. Prices are in a two-month-old uptrend on the daily bar chart. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 450.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 400.00 cents. First resistance is seen at today’s high of 429.95 cents and then at this week’s high of 433.50 cents. First support is seen at today’s low of 422.85 cents and then at 420.00 cents. Wyckoff’s Market Rating: 8.0.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
### Additional Insight:
– The geopolitical tensions between Iran and Israel could potentially impact the safe-haven buying trend in gold and silver.
– The U.S. inflation reports and central bank decisions play a significant role in influencing market sentiment.
– Chinese economic indicators highlight the global economic landscape and impact on monetary policies.
