Gold slightly up in lackluster dealings

Gold prices are a bit firmer and silver prices a bit weaker near midday Tuesday. Gold is seeing some short covering in the futures market and some perceived bargain hunting in the cash market. Precious metals traders are awaiting the next fundamental even to provide a spark to trading action. That may come with some U.S. inflation data coming out later this week. April gold was last up $6.00 at $2,044.90. March silver was last down $0.046 at $22.48.

U.S. stock index futures are mixed near midday. It’s been a quieter trading week so far.

The key outside markets today see the U.S. dollar index slightly lower. Nymex crude oil prices are firmer and trading around $78.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 4.291%.

The U.S. data point of the week is likely going to be Thursday morning’s personal income and outlays report for January, which includes the personal consumption expenditures (PCE) inflation indexes. The PCE price index in January is seen up 2.6%, year-on-year, while the core PCE price index is seen up 2.9% in the same period. Those forecasts are just slightly higher than the readings seen in the December report.

Technically, April gold futures bears have the slight overall near-term technical advantage. Prices are in a three-month-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the February high of $2,083.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at last week’s high of $2,053.20 and then at $2,061.00. First support is seen at this week’s low of $2,034.10 and then at $2,025.00. Wyckoff's Market Rating: 4.5.

March silver futures bears 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 $23.56. The next downside price objective for the bears is closing prices below solid support at the February low of $21.975. First resistance is seen at $23.00 and then at $23.20. Next support is seen at $22.25 and then at $22.00. Wyckoff's Market Rating: 3.5.

March N.Y. copper closed up 5 points at 382.05 cents today. Prices closed nearer the session low today. The copper bulls have the slight overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the January high of 394.70 cents. The next downside price objective for the

bears is closing prices below solid technical support at the February low of 365.50 cents. First resistance is seen at this week’s high of 387.15 cents and then at last week’s high of 390.85 cents. First support is seen at 380.00 cents and then at 375.00 cents. Wyckoff's Market Rating: 5.0.

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Jim Wyckoff

David

Gold, silver see strong rallies after tamer U.S. inflation report

Gold and silver prices are sharply up, nearer their daily highs and hit three-week peaks Wednesday, in the aftermath of a morning U.S. inflation report that came in a bit tamer than market expectations.August gold was last up $24.60 at $1,961.70 and September silver was up $1.014 at $24.295.

The U.S. data point of the week saw the consumer price index report for June come in up 3.0%, year-on-year, which is slightly lower than the expected rise of 3.1% and compares to the gain of 4.0% in the May report. The "core" CPI, which excludes food and energy, came in at up 4.8%, year-on-year, compared with expectations of up 5.0%. These numbers fall into the camp of the monetary policy doves, who want to see the Federal Reserve continue to stand pat on interest rate levels.

The U.S. dollar index sold off sharply, stock indexes rallied and U.S. Treasury yields dropped following the upbeat CPI data.

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The key outside markets today see the U.S. dollar index solidly lower and hitting a two-month low. Nymex crude oil prices are higher and trading around $75.50 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.859%–well down from overnight levels.

Technically, August gold futures prices hit a three-week high today. Bulls and bears are back on a level overall near-term technical playing field but the bulls have momentum. A nine-week-old downtrend on the daily bar chart has been negated. Bulls' next upside price objective is to produce a close above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the June low of $1,900.60. First resistance is seen at today's high of $1,963.60 and then at $1,975.00. First support is seen at $1,950.00 and then at today's low of $1,937.50. Wyckoff's Market Rating: 5.0.

September silver futures prices hit a three-week high today. The silver bulls have gained the slight overall near-term technical advantage. A nine-week-old price downtrend on the daily bar chart has been negated. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at the June low of $22.34. First resistance is seen at $24.50 and then at the June high of $24.835. Next support is seen at $24.00 and then at $23.50. Wyckoff's Market Rating: 5.5.

September N.Y. copper closed up 860 points at 385.20 cents today. Prices closed nearer the session high and hit a two-week high on short covering. The copper bears still have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the June high of 396.40 cents. The next downside price objective for the bears is closing prices below solid technical support at 368.30 cents. First resistance is seen at today's high of 386.05 cents and then at 390.00 cents. First support is seen at 380.00 cents and then at this week's low of 374.25 cents. Wyckoff's Market Rating: 4.0.

Jim Wyckoff

For Kitco News

Time to Buy Gold and silver

David