Gold, silver see strong advances as U.S. inflation hot, crude oil rallies

(Kitco News) - Gold and silver prices are posting solid gains in midday U.S. action Tuesday, with gold notching a four-week high and silver a two-week high. Another U.S. inflation report that ran hot and big gains in crude oil futures today boosted the precious metals markets. June gold futures were last up $30.40 at $1,979.10 and May Comex silver was last up $0.808 at $25.795 an ounce.

The U.S. data point of the week Tuesday morning saw the consumer price index for March come in at up 8.5%, year-on-year, which is a 40-year high. March CPI was expected to come in at up 8.4%, annually. On Wednesday comes the U.S. producer price index report for March. Rising and problematic inflation have been historically bullish for hard assets like the metals.

Global stocks markets were mixed overnight. The U.S. stock indexes are higher at midday. On the Russia invasion of Ukraine front, the U.S. has now warned the war will take a more protracted and bloodier turn. Reports said European countries are now focusing more on arming the Ukrainians and less on adding economic sanctions on Russia.

Nymex crude oil futures prices are sharply higher today and trading around $100.50 a barrel. The U.S. dollar index is firmer today and hit another two-year high overnight. The yield on the 10-year U.S. Treasury note is presently fetching 2.7% and near this week’s more-than-three-year high.

Technically, April gold futures prices hit another four-week high today. Bulls have the firm overall near-term technical advantage. Bulls' next upside price objective is to produce a close above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,915.00. First resistance is seen at today’s high of $1,982.70 and then at $2,000.00. First support is seen at today’s low of $1,953.00 and then at this week’s low of $1,942.90. Wyckoff's Market Rating: 7.0

May silver futures bulls have the overall near-term technical advantage and have momentum. Silver bulls' next upside price objective is closing prices above solid technical resistance at $26.16 an ounce. The next downside price objective for the bears is closing prices below solid support at the March low of $24.045. First resistance is seen at $26.00 and then at $26.16. Next support is seen at $25.50 and then at $25.00. Wyckoff's Market Rating: 7.0.

May N.Y. copper closed up 770 points at 471.20 cents today. Prices closed nearer the session high today. The copper bulls have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the April high of 486.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the March low of 446.85 cents. First resistance is seen at 476.55 cents and then at 480.00 cents. First support is seen at 465.00 cents and then at this week’s low of 462.40 cents. Wyckoff's Market Rating: 6.9.

By Jim Wyckoff

For Kitco News

 jwyckoff@kitco.com

www.kitco.com