NEW YORK (Kitco News) - Gold and silver futures prices were a bit higher in early U.S. trading Wednesday, as the technical charts for both metals have seen improvement this week, which is inviting speculators to the long side of the markets. April gold futures were last up $3.00 at $1,830.80 and March Comex silver was last up $0.085 at $23.29 an ounce.
Global stock markets were mostly up overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. Attention remains on the release of corporate earnings reports. While the earnings reports have been generally upbeat, traders and investors are still wary about rising inflation and the timing of the Federal Reserve’s tightening of its monetary policy. Rising U.S. Treasury yields this week suggest the marketplace is placing its bets on a more aggressive path of rate hikes from the Fed over the coming months.
The marketplace is still closely watching the Russia buildup of troops and weapons on the Ukrainian border. However, there are growing notions Russia may not invade Ukraine, amid a flurry of diplomacy from European nations.
The U.S. data point of the week will be Thursday morning’s consumer price index report for January, expected to come in at up 7.2%, year-on-year. That would be a hot reading if the CPI number meets market expectations.
The key outside markets today see crude oil prices lower and trading around $88.75 a barrel. The U.S. dollar index is lower early today. The U.S. Treasury 10-year note yield is presently fetching 1.925%.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, monthly wholesale trade and the weekly DOE liquid energy stocks report.
Technically, the April gold futures bulls have the overall near-term technical advantage and are having a good week. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at the January high of $1,856.70. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the January low of $1,780.60. First resistance is seen at $1,835.40 and then at $1,840.00. First support is seen at the overnight low of $1,826.10 and then at Tuesday’s low of $1,816.00. Wyckoff’s Market Rating: 6.5