(Kitco News) - Gold and silver prices are modestly down in midday U.S. trading Tuesday, following a key U.S. inflation report that came in just a bit warmer than market expectations. The gold market scored a five-week low and silver a 2.5-month low today. April gold was last down $3.40 at $1,860.10 and March silver was down $0.122 at $21.725.
Today's U.S. economic data point of the week--the consumer price index report for January - showed CPI up 6.4%, year-on-year. The CPI was forecast to be up 6.2%, compared to the rise of 6.5% in the December report. Month-on-month, the CPI was up 0.5% compared to up 0.4% in the December reading. While the CPI numbers were just slightly higher than expected, the marketplace initially breathed a sign relief the data was not hotter. However, the marketplace then apparently realized U.S. inflation still has to come down quite a lot to meet the Federal Reserve's target of around 2% annual inflation. That means the Fed will likely have to keep ratcheting up interest rates. On Thursday, the U.S. producer price index report is released.
Global stock markets were mixed but mostly higher overnight. U.S. stock indexes are solidly lower at midday.
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This is the next big catalyst for gold price |
Oil prices dropped today as the U.S. government said it would release 26 million barrels of its strategic petroleum reserves. The move was not a big surprise. A bigger draw on those reserves was made by the government last year. Nymex crude oil futures prices are lower and trading around $78.75 a barrel. The U.S. dollar index is slightly up at midday. The yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.778%. Bond yields up-ticked after the CPI report.
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, April gold futures prices hit a five-week low today and scored a bearish "outside day" down on the daily bar chart. Bulls still have the slight overall near-term technical advantage. However, they continue to fade and a fledgling downtrend is in place on the daily chart. Bulls' next upside price objective is to produce a close above solid resistance at $1,925.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at today's high of $1,881.60 and then at $1,900.00. First support is seen at today's low of $1,852.50 and then at $1,835.00. Wyckoff's Market Rating: 5.5
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
March silver futures prices hit a 2.5-month low today. The silver bears have gained the slight overall near-term technical advantage and have momentum on their side. 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 $21.00. First resistance is seen at $22.00 and then at $22.25. Next support is seen at today's low of $21.585 and then at $21.25. Wyckoff's Market Rating: 4.5.
March N.Y. copper closed down 60 points at 405.15 cents today. Prices closed nearer the session low. The copper bulls have the overall near-term technical advantage. However, a fledgling price downtrend is in place on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the January high of 435.50 cents. The next downside price objective for the bears is closing prices below solid technical support at 380.00 cents. First resistance is seen at last week's high of 412.05 cents and then at 417.50 cents. First support is seen at the February low of low of $3.9930 and then at 395.00 cents. Wyckoff's Market Rating: 6.0.
