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(Kitco News) – Gold and silver futures prices are a bit weaker in early U.S. trading Tuesday, on some routine backing and filling on the charts as fresh fundamental inputs are awaited. April gold futures were last down $3.10 at $1,818.60 and March Comex silver was last down $0.261 at $22.82 an ounce.
Global stock markets were mixed overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. Corporate earnings reports are in the spotlight at present. While earnings reports have been mostly upbeat, some have not, including a few big companies. That and inflation worries are making the U.S. stock indexes wobbly. More and more, it’s looking like the Federal Reserve will be aggressive and raise the Fed funds rate by 0.5% at its March meeting. Historically, rising interest rates and rising inflation have been bearish for stock markets.
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 $89.65 a barrel after prices last Friday hit a seven-year high. The U.S. dollar index is firmer early today. The U.S. Treasury 10-year note yield is presently fetching 1.932%, which is near a three-year high.
U.S. economic data due for release Tuesday includes the weekly chain store and Johnson Redbook retail sales reports, the NFIB small business index, the international trade report, and the IBD/TIPP economic optimism index.
Technically, the April gold futures bulls have the overall near-term technical advantage. 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 December low of $1,755.40. First resistance is seen at this week’s high of $1,824.60 and then at $1,835.00. First support is seen at this week’s low of $1,807.50 and then at $1,800.00. Wyckoff’s Market Rating: 6.0
March silver futures bears have the overall near-term technical advantage. 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 the December low of $21.41. First resistance is seen at this week’s high of $23.11 and then at $23.48. Next support is seen at this week’s low of $22.50 and then at $22.25. Wyckoff’s Market Rating: 3.0.
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.