(Kitco News) – Gold prices are moderately lower in midday U.S. trading Wednesday, while silver prices are a bit higher and hit a nearly three-year high. Precious metals traders do not seem too concerned about U.S. inflation report that came in higher than expected. June gold was last down $10.20 at $2,351.10 but up from its daily low. May silver was last up $0.151 at $28.15.
Today’s U.S. consumer price index for March came in at up 3.5% and up 3.8% for the core rate, year-on-year. The March CPI was seen by the marketplace as coming in at up 3.4%, year-on-year. The core CPI, excluding food and energy, was seen at up 3.7% annually. Today’s CPI data favors the U.S. monetary policy hawks. “This is really going to call into question whether the Fed can cut rates in June,” said a Bloomberg Radio host.
This afternoon comes the minutes of the last FOMC meeting. Thursday comes the U.S. March producer price index and the European Central Bank monetary policy meeting.
U.S. stock indexes are solidly lower and sold off after the hotter CPI print.
Reads a Dow Jones Newswires headline overnight: “Commodities rally reflects a better economy, but also poses inflation risks.”
The key outside markets today see the U.S. dollar index sharply higher and hitting a five-month high after the hot CPI report. Nymex crude oil prices are slightly down and trading around $84.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching around 4.6% and on the rise today.
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 $2,337.10 and then at this week’s low of $2,321.70. Wyckoff’s Market Rating: 9.0.
May silver futures scored a bullish “outside day” up today and hit nearly three-year high. The silver 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 $28.655 and then at $29.00. Next support is seen at $28.00 and then at today’s low of $27.64. Wyckoff’s Market Rating: 8.5.
May N.Y. copper closed down 210 points at 426.45 cents today. Prices closed nearer the session low and hit a 14-month high early on today. 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 433.50 cents and then at 437.50 cents. First support is seen at today’s low of 424.10 cents and then at 420.00 cents. Wyckoff’s Market Rating: 8.0.
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