Editor’s Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today’s must-read news and expert opinions. Sign up here!
(Kitco News) – Gold and silver futures prices are a bit higher in early U.S. trading Wednesday, as the technical charts for both metals have seen improvement this week, which is inviting speculators to the long side of the markets. April gold futures were last up $3.00 at $1,830.80 and March Comex silver was last up $0.085 at $23.29 an ounce.
Global stock markets were mostly up overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. Attention remains on the release of corporate earnings reports. While the earnings reports have been generally upbeat, traders and investors are still wary about rising inflation and the timing of the Federal Reserve’s tightening of its monetary policy. Rising U.S. Treasury yields this week suggest the marketplace is placing its bets on a more aggressive path of rate hikes from the Fed over the coming months.
The marketplace is still closely watching the Russia buildup of troops and weapons on the Ukrainian border. However, there are growing notions Russia may not invade Ukraine, amid a flurry of diplomacy from European nations.
The U.S. data point of the week will be Thursday morning’s consumer price index report for January, expected to come in at up 7.2%, year-on-year. That would be a hot reading if the CPI number meets market expectations.
The key outside markets today see crude oil prices lower and trading around $88.75 a barrel. The U.S. dollar index is lower early today. The U.S. Treasury 10-year note yield is presently fetching 1.925%.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, monthly wholesale trade and the weekly DOE liquid energy stocks report.
Technically, the April gold futures bulls have the overall near-term technical advantage and are having a good week. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at the January high of $1,856.70. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the January low of $1,780.60. First resistance is seen at $1,835.40 and then at $1,840.00. First support is seen at the overnight low of $1,826.10 and then at Tuesday’s low of $1,816.00. Wyckoff’s Market Rating: 6.5
March silver futures bears have the overall near-term technical advantage. However, the bulls are having a good week and have momentum on their side. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $24.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at $23.48 and then at $23.75. Next support is seen at $23.00 and then at Tuesday’s low of $22.77. Wyckoff’s Market Rating: 4.0.
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.