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(Kitco News) – Gold prices are trading close to unchanged in midday U.S. action today as traders stepped in to buy the moderate overnight downside correction after the solid gains posted Tuesday. Follow-through strength from Tuesday’s gains on Thursday or Friday would be a good sign for the gold market bulls, including beginning to suggest a near-term market bottom is in place. Silver prices are slightly down at midday but the bulls are also having a decent week, so far. April gold futures were last up $1.20 at $1,718.10 and May Comex silver was last down $0.023 at $26.16 an ounce.
Global stock markets were mixed to higher overnight. China’s stock market stabilized at mid-week after seeing strong selling pressure earlier this week. U.S. stock indexes are mixed to higher at midday. Trader and investor attitudes are more upbeat at mid-week, following strong gains posted in the U.S. stock market on Tuesday. However, after retreating a bit Tuesday, U.S. Treasury yields are on the rise again Wednesday morning, which is likely to limit buying interest in equities. The closely watched U.S. Treasury 10-year note yield is fetching 1.55% in midday U.S. trading.
The key U.S. data point at mid-week was the consumer price index for February, which came in at up 0.4% from January, right as expected, and compares to a 0.3% rise seen in January from December. CPI, year-on-year in February, was up 1.7%. Meantime, producer price inflation data from China is running a bit hotter. The producer price index for February was reported up 1.7% compared to a rise of 0.3% in January. However, the consumer price index in China in February remained tame, at down 0.2%. All the China figures are based on year-on-year.
The key “outside markets” today see Nymex crude oil futures prices weaker and trading around $63.70 a barrel. Meantime, the U.S. dollar index is near steady at midday today.
Technically, April gold futures prices were nearer the session high at midday. The gold bears have the solid overall near-term technical advantage. However, more solid price gains the rest of this week would begin to suggest a market bottom is in place. Prices are still in a two-month-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,750.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,650.00. First resistance is seen at today’s high of $1,721.80 and then at $1,725.00. First support is seen at today’s low of $1,705.60 and then at $1,700.00. Wyckoff’s Market Rating: 2.5
May silver futures were also nearer the session high. The silver bears have the slight overall near-term technical advantage. Prices are in a five-week-old downtrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $27.50 an ounce. The next downside price objective for the bears is closing prices below solid support at $24.00. First resistance is seen at $26.385 and then at $27.00. Next support is seen at today’s low of $25.61 and then at $25.00. Wyckoff’s Market Rating: 4.5.
May N.Y. copper closed up 295 points at 403.80 cents today. Prices closed nearer the session high. The copper bulls have the firm overall near-term technical advantage. However, a 12-month-old uptrend on the daily bar chart may be stalling out. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the February high of 437.55 cents. The next downside price objective for the bears is closing prices below solid technical support at the March low of 384.90 cents. First resistance is seen at Tuesday’s high of 412.10 cents and then at this week’s high of 417.05 cents. First support is seen at this week’s low of 397.20 cents and then at 390.00 cents. Wyckoff’s Market Rating: 7.0.