Gold price up again @$2,938/oz. but backs off a bit after warm U.S. PPI

(Kitco News, Thurs. Feb. 13th, 2025) – Gold prices are moderately higher but down from overnight highs following another U.S. inflation report that came in warmer than expected. Silver prices are slightly down. April gold was up $9.90 at $2,938.10. March silver prices were last down $0.085 at $32.72.

The just-released U.S. producer price index report for January showed a rise 3.4%, year-on-year, versus expectations for an annual rise of 3.2% and follows an upwardly revised 3.5% rise in the December PPI report. Month-on-month, PPI was up 0.4% versus expectations for a 0.3% rise and follows an upwardly revised gain of 0.5%, month-on-month, in the December report. The “core” PPP (excluding food and energy) came in up 0.3%, month-on-month, right in line with forecasts and compares to a zero percent reading in the January report. The warmer PPI report follows a hot consumer price index report for January, released on Wednesday.

The key outside markets today see the U.S. dollar index weaker. Nymex crude oil futures prices are lower and trading around $70.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.617%.

Asian and European shares were mostly up in trading overnight, with some European and Australian indexes hitting record highs. U.S. stock indexes are set to open firmer when the New York day session begins.

The euro currency rallied against the dollar overnight and European stocks rose amid better marketplace risk sentiment after U.S. President Trump said he’s initiating Ukraine-Russia peace talks with Russian President Vladimir Putin. Oil prices fell on the news. Said Bloomberg today: “The euro’s rally on the prospect of Ukraine peace talks is an impressive demonstration of the discount on European assets since Russia’s invasion almost three years ago.”

Other U.S. economic data due for release Thursday includes the weekly jobless claims report.

Technically, April gold futures bulls have the strong overall near-term technical advantage. Prices are trending up on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $3,000.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,800.00. First resistance is seen at the overnight high of $2,950.30 and then at the contract high of $2,968.50. First support is seen at the overnight low of $2,925.90 and then at $2,900.00.

March silver futures bulls have the overall near-term technical advantage amid a price uptrend in place on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $34.00. The next downside price objective for the bears is closing prices below solid support at $31.00. First resistance is seen at the $33.00 and then at the December high of $33.33. Next support is seen at $32.50 and then at $32.00.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com