Price corrections in gold, silver after solid gain...
(Kitco News) - Gold and silver prices are lower early today and normal downside corrections after the good gains posted Tuesday. Also, the U.S. dollar index is firmer and U.S. Treasury bonds are on the rise again at mid-week—negatives for the precious metals markets. April gold futures were last down $7.50 at $1,709.40 and May Comex silver was last down $0.388 at $25.80 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 pointed toward narrowly mixed openings when the New York day session begins. 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 1.554% in early U.S. trading.
In overnight news, 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 these figures are based on year-on-year.
The key U.S. data point at mid-week is the consumer price index for February, expected to come in at up 0.4% from January, compared to a 0.3% rise seen in January from December. CPI, year-on-year in February, is seen up 1.7%.
The key 'outside markets' today see Nymex crude oil futures prices higher and trading around $64.25 a barrel. Meantime, the U.S. dollar index is firmer early today.
Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, real earnings, the monthly Treasury budget statement and the weekly DOE liquid energy stocks report.
Technically, the April gold futures bears have the solid overall near-term technical advantage amid a two-month-old price downtrend in place on the daily chart. Bulls' next upside price objective is to produce a close in April futures above solid resistance at this week's high of $1,757.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,650.00. First resistance is seen at this week's high of $1,718.70 and then at $1,725.00. First support is seen at $1,700.00 and then at $1,685.00. Wyckoff's Market Rating: 2.5
May silver futures 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 $27.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $24.00. First resistance is seen at $26.00 and then at this week's high of $26.22. Next support is seen at today's low of $25.61 and then at $25.00. Wyckoff's Market Rating: 4.5.