(Kitco News) - Gold and silver prices are lower near midday Tuesday, in the aftermath 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 $21.20 at $2,167.70. May silver was last down $0.285 at $24.43.
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.
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 solidly higher near midday. The bull market run in U.S. equities is a negative for the precious metals markets, from the perspective of a competing asset class.
The key outside markets today see the U.S. dollar index modestly up. Nymex crude oil prices are firmer and trading around $78.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 4.149%.
Technically, April gold futures bulls still have the strong 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 above solid resistance at the contract high of $2,203.00. 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 the contract high of $2,203.00. First support is seen at today’s low of $2,158.20 and then at $2,150.00. Wyckoff's Market Rating: 8.5.
May silver futures prices scored a bearish “outside day” down today after hitting a nine-week-high early on. The silver bulls still have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $26.00. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at today’s high of $24.90 and then at $25.00. Next support is seen at today’s low of $24.22 and then at $24.00. Wyckoff's Market Rating: 6.5.
May N.Y. copper closed down 75 points at 392.10 cents today. Prices closed near mid-range and hit a five-week high today. The copper bulls have the firm overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the December high of 388.80 cents. The next downside price objective for the bears is closing prices below solid technical support at the February low of 367.95 cents. First resistance is seen at today’s high of 395.20 cents and then at the January high of 396.75 cents. First support is seen at this week’s low of 387.85 cents and then at last week’s low of 383.70 cents. Wyckoff's Market Rating: 7.0.
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