Gold, silver rally on tame U.S. CPI, safe-haven buying

(Kitco News, Wed. March 12th,2025) – Gold and silver prices are solidly up and hit two- and three-week highs, respectively, in midday U.S. trading following a U.S. inflation report that came in just a bit cooler than expected. Safe-haven demand for the two precious metals remains in place amid global trade friction that could produce slowing world economic growth. April gold was last up $20.40 at $2,941.30. May silver prices were last up $0.538 at $33.68.

Today’s U.S. data point of the week saw the consumer price index report for February come in at up 2.8%, year-on-year. The CPI report was seen coming in at up 2.9%, year-on-year, versus a rise of 3.0 in the January report. The producer price index report comes out Thursday and is seen up 0.3%, month-on-month, compared to a rise of 0.4% in the January report. The U.S. dollar index lost most of its overnight gains following the CPI report.

U.S. stock indexes are higher at midday but down from session highs, on corrective bounces following recent selling pressure that pushed the major indexes to multi-month lows. Traders and investors are still anxious regarding the seemingly near-daily changes in U.S. trade tariffs policy, and the retaliations by U.S. trading partners. Reads a Wall Street Journal headline today: “Tariff drama drags on; stock markets need a return of Trump the dealmaker.”

The key outside markets today see the U.S. dollar index slightly higher. Nymex crude oil futures prices are higher and trading around $67.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.3%.

Technically, April gold futures bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $2,974.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at last week’s low of $2,844.10. First resistance is seen at $2,950.00 and then at the contract high of $2,974.00. First support is seen at today’s low of $2,911.00 and then at $2,900.00.

May silver futures bulls have the overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the February high of $34.56. The next downside price objective for the bears is closing prices below solid support at the February low of $31.365. First resistance is seen at $34.00 and then at $34.56. Next support is seen at the overnight low of $33.18 and then at $33.00.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com