(Kitco News, Thurs. Feb. 16th,2023) – Gold and silver prices are steady to slightly lower in early U.S. trading Thursday, in the immediate aftermath of a U.S. inflation report that came in hot. April gold was last down $0.80 at $1,844.70 and March silver was down $0.072 at $21.50.
The just-released U.S. data point of the day Thursday saw the U.S. producer price index report for January come in at up 0.7% month-on-month, which was well above the PPI forecast of up 0.4% from December, following a decline of 0.5% in December from November. The hotter PPI report falls into the camp of the U.S. monetary policy hawks, who want to see the Fed continue to raise U.S. interest rates to choke off problematic price inflation.
Global stock markets were mostly higher. U.S. stock indexes are pointed toward lower openings when the New York day session begins.
In overnight news, China-U.S. relations continued to deteriorate as China black-listed U.S. companies Lockheed and Raytheon, both major U.S. defense contractors. This comes after the U.S. black-listed six Chinese companies linked to the Chinese spy balloons.
The key outside markets see the U.S. dollar index weaker on a corrective pullback from recent good gains that saw the index hit a five-week high Wednesday. Nymex crude oil futures prices are slightly up and trading around $78.75 a barrel. The yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.788%.
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CBO sees U.S. deficit growing by $19 trillion in the next 30 years |
U.S. economic data due for release Thursday includes the weekly jobless claims report, the producer price index, the Philadelphia Fed business survey, and new residential construction. Several Federal Reserve officials are slated to give speeches today.
Gold Price in US Dollars
Feb 16, 2023 12:41 NY Time
Bid
1,843.60
+7.30 (+0.40%)
Ask
1,844.60
Technically, the gold futures bulls still have the slight overall near-term technical advantage as gold markets see longer term gains. Although prices are in a downtrend on the daily bar chart, bulls’ next upside price objective is to produce a close in April futures above solid resistance at $1,900.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at Wednesday’s high of $1,870.90 and then at this week’s high of $1,881.60. First support is seen at this week’s low of $1,839.30 and then at $1,830.00.
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
The silver bears have the overall near-term technical advantage. Prices are in a downtrend on the daily bar chart. Silver bulls’ next upside price objective is closing March futures 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 Wednesday’s high of $21.875 and then at this week’s high of $22.085. Next support is seen at this week’s low of $21.41 and then at $21.00.
Posted by:
Jack Dempsey, President
401 Gold Consultants LLC
jdemp2003@gmail.com