Gold, silver gain on friendly charts, bullish outside markets

(Kitco News, Wed. Mar. 13th, 2024) – Gold and silver prices are higher and near their daily highs near midday Wednesday. Bullish near-term technical postures and positive outside-market forces (weaker USDX and firmer crude oil) are supporting buying interest in both precious metals today. April gold was last up $9.50 at $2,175.90. May silver was last up $0.361 at $24.76.

The marketplace has digested Tuesday’s U.S. consumer price index for February that came in a bit warmer than expected, at up 3.2%, year-on-year, versus market expectations for a rise of 3.1%, and compares to a rise of 3.1% seen in the January report. The core CPI number for February was up 3.8% compared to expectations of up 3.7% and up 3.9% seen in the January report. The slightly warmer CPI readings followed the slightly warmer-than-expected CPI report for January. Thursday’s February producer price index report is now in focus. PPI in February is seen coming in up 0.3%, month-on-month, following a 0.3% rise in the January report. More warm U.S. inflation readings in the coming weeks may prevent the Federal Reserve from cutting interest rates as soon as it had just recently anticipated.

Asian and European stock markets were mixed in overnight trading. U.S. stock index futures are mixed near midday but not far below their recent record highs.

The key outside markets today see the U.S. dollar index weaker. Nymex crude oil prices are higher and trading around $79.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching around 4.2%.

Technically, April gold futures 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 the contract high of $2,203.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,100.00. First resistance is seen at Tuesday’s high of $2,190.80 and then at the contract high of $2,203.00. First support is seen at today’s low of $2,161.30 and then at this week’s low of $2,156.20.

May silver futures prices were poised to close at a nine-week-high close today. The silver bulls have the overall near-term technical advantage. 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 $23.00. First resistance is seen at this week’s high of $24.90 and then at $25.00. Next support is seen at this week’s low of $24.22 and then at $24.00.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com