Gold, silver firmer; bull-market runs still strong

Metals traders are awaiting arguably the U.S. data point of the week that comes on Tuesday: the consumer price index report for February, seen coming in at up 3.7%, year-on-year, versus a rise of 3.9% seen in the January report. A warmer-to-hot CPI reading could at least temporarily derail the bull runs in gold and silver. That would mean a number coming in above the January rise of 3.9%. Such could give the Federal Reserve pause in its notions of lower U.S. interest rates in the second half of this year.

U.S. stock index futures are lower near midday, on corrective, profit-taking pullbacks after last week’s record highs were set.

The key outside markets today see the U.S. dollar index firmer. Nymex crude oil prices are slightly weaker and trading around $77.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching around 4.08%.

Technically, April gold futures prices closed at a contract-high close today. The bulls 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 $2,250.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,100.00. First resistance is seen at the contract high of $2,203.00 and then at $2,225.00. First support is seen at $2,175.00 and then at last Friday’s low of $2,161.20.

May silver futures prices closed at a nine-week-high close today. The silver bulls have the overall near-term technical advantage and have momentum. 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 this week’s low of $23.23. First resistance is seen at last week’s high of $24.86 and then at $25.00. Next support is seen at Friday’s low of $24.38 and then at $24.00. Wyckoff’s Market Rating: 6.5.

May N.Y. copper closed up 265 points at 391.80 cents today. Prices closed near the session 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 last week’s high of 394.65 cents and then at the January high of 396.75 cents. First support is seen at today’s low of 387.85 cents and then at last week’s low of 383.70 cents.

Posted by :

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com