(Kitco News) – Gold and silver prices are weaker and setting new daily lows in early U.S. trading Tuesday, following a key U.S. inflation report that came in just a bit warmer than market expectations and prompted some profit taking. April gold was last down $19.50 at $2,168.80. May silver was last down $0.34 at $24.375.
The U.S. data point of the week saw the consumer price index for February come in just a bit warmer than expected, at up 3.2%, year-on-year, versus market expectations for a rise of 3.1%, and compares to a rise of 3.1% seen in the January report. The core CPI number for February was up 3.8% compared to expectations of up 3.7% and up 3.9% seen in the January report. The slightly warmer CPI readings boosted the U.S. dollar index a bit, while U.S. Treasury yields up-ticked slightly. Still,
traders and investors reckon today’s CPI numbers will not significantly change the trajectory of Federal Reserve monetary policy.
JP Morgan chief Jamie Dimon said overnight the Federal Reserve should wait until after June to lower interest rates. Dimon, visiting Australia, also told a group that the U.S. stock market could be in a bubble phase, adding to be extra cautious when an investment looks so obvious.
Asian and European stock markets were mixed in overnight trading. U.S. stock index futures are set to open higher when the New York day session begins.
The key outside markets today see the U.S. dollar index a bit lower. Nymex crude oil prices are near steady and trading around $78.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 4.089%.
Other U.S. economic data due for release Tuesday includes the weekly Johnson Redbook retail sales report, the NFIB small business index and the monthly Treasury budget statement.
Technically, the gold futures bulls have the solid overall near-term technical advantage. A steep four-week-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at $2,250.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,100.00. First resistance is seen at today’s high of $2,190.80 and then at this week’s high of $2,195.50. First support is seen at $2,150.00 and then at $2,131.90. Wyckoff’s Market Rating: 8.0.
The silver bulls have the overall near-term technical advantage. Prices hit a 2.5-month high overnight. Silver bulls’ next upside price objective
is closing May futures prices above solid technical resistance at $26.00. The next downside price objective for the bears is closing prices below solid support at $23.50. First resistance is seen at today’s high of $24.90 and then at $25.00. Next support is seen at $24.00 and then at $23.785. Wyckoff’s Market Rating: 6.5.
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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.
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