(Kitco News) - Gold prices are weaker in midday U.S. trading Tuesday, on a normal downside correction following strong gains posted Monday. Silver prices are a bit higher today and hit a three-week high. The general marketplace breathed a slight sigh of relief following a U.S. inflation report today that did not come in hotter than expected amid the current financial turmoil. April gold was last down $7.20 at $1,909.30 and May silver was up $0.052 at $21.98.
The U.S. consumer price index report for February showed a rise of 6.0%, year-on-year (up 0.4% from January), which is right in line with market expectations and compares to a rise of 6.4% in the January CPI report. The core CPI number was up 5.5%, also in line with market expectations. Gold and silver prices regained some overnight losses on the inflation data, which traders and investors were worried would come in hotter than expected.
Global stock markets were mostly lower overnight, while U.S. stock indexes are solidly higher at midday. Trader and investor anxiety is less elevated Tuesday, following late last week’s collapse of Silicon Valley Bank (SVB), the sixteenth largest bank in the U.S. However, the reverberations of the bank failure are still present in the marketplace and will likely continue to be for at least the next few days.
The U.S. Treasury market has seen yields bounce back higher Tuesday. The yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.651%. But another surge in U.S. T-Bond and T-Note prices (falling yields) would suggest a renewed marketplace worry and anxiety. The U.S. 2-year Treasury note on Monday surged to the largest daily price gain (yield decline) since the stock market meltdown in 1987.
|
|
Gold price to 'lose momentum' ahead of Fed meeting, hawkish stance remains a threat after inflation report, says TD Securities |
The key outside markets today see the U.S. dollar index slightly firmer after a steep two-session downdraft. Nymex crude oil futures prices are lower and trading around $74.00 a barrel. Crude has been hit this week by worries about declining global demand amid the financial turmoil and its lingering implications.
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, April gold futures saw a routine corrective pullback featured after prices hit a five-week high Monday. Bulls have the firm overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the February high of $1,975.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,850.00. First resistance is seen at this week’s high of $1,919.50 and then at $1,932.40. First support is seen at $1,900.00 and then at $1,885.00. Wyckoff's Market Rating: 7.0
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
May silver futures prices hit a three-week high today. The silver bulls have the slight overall near-term technical advantage. A five-week-old downtrend on the daily bar chart has been soundly negated. Silver bulls' next upside price objective is closing prices above solid technical resistance at $23.00. The next downside price objective for the bears is closing prices below solid support at the March low of $19.945. First resistance is seen at $22.25 and then at $22.50. Next support is seen at today’s low of $21.465 and then at $21.00. Wyckoff's Market Rating: 5.5.
May N.Y. copper closed down 340 points at 403.00 cents today. Prices closed near mid-range today. The copper bulls have the slight overall near-term technical advantage but prices are in a seven-week-old downtrend 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 423.40 cents. The next downside price objective for the bears is closing prices below solid technical support at 385.00 cents. First resistance is seen at this week’s high of 407.75 cents and then at 410.00 cents. First support is seen at today’s low of 398.20 cents and then at this week’s low of 392.15 cents. Wyckoff's Market Rating: 5.5.
