Gold, Silver Up On Safe-Haven Demand, Weaker U.S. Dollar, Tame U.S. CPI
(Kitco News) - Gold and silver pricesare moderately higher in early U.S. trading Thursday. The metalsare seeing support from a bit of safe-haven demand, a slightly lower U.S.dollar index, a tame U.S. inflation report, and some short covering in thefutures markets. June Comex gold futures were last up $8.30 an ounce at $1,321.20.July Comex silver was last up $0.196 at $16.73 an ounce.
TheU.S. economic highlight today saw the just-released consumer price index forApril come in at up 0.2%, month-on-month and up 2.5%, year-on-year. The numberswere expected to come in up 0.3% from March, and up 2.5% at an annual rate. The“core” CPI rate, excluding food and energy, was up 0.1% in April from March,and up 2.1%, year-on-year. The core rate rose 0.2% in the March report. Goldand silver prices moved higher on this data, on ideas the Federal Reserve maynot have to be so aggressive on raising U.S. interest rates, what with lowinflationary expectations.
Theoverall marketplace is not seeing a significant reaction from renewedSyria-Israeli military action, as both sides conducted air strikes against theother the past 24 hours. Still, it appears the Middle East has once againbecome a geopolitical flashpoint for the markets. Right now, that’s a mildlybullish element for safe-haven gold and silver, but could become moresignificantly bullish if the situation escalates.
Worldstock markets were mixed overnight. U.S. stock indexes are pointed towardslightly higher openings when the New York day session begins.
Theconclusion of the Bank of England’s regular monetary policy meeting today sawno change in U.K. interest rates, which was expected by the marketplace.
The“outside markets” today find Nymex crude oil prices modestly higher, at a new3.5-year high, and trading near $72.00 a barrel. The U.S. dollar index isslightly lower on profit taking after hitting a 4.5-month high Wednesday.
OtherU.S. economic data due for release Thursday includes the weekly jobless claimsreport, real earnings, the monthly Treasury budget statement and monthly chainstore sales.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.2924175530478188)
Technically,Junegold bulls and bears are on a level overall near-term technical playingfield. Gold bulls' next upside near-term price breakout objective is to producea close above solid technical resistance at $1,338.00. Bears' next near-termdownside price breakout objective is pushing prices below solid technicalsupport at $1,300.00. First resistance is seen at $1,325.00 and then at $1,330.00.First support is seen at this week’s low of $1,304.20 and then at the May lowof $1,302.30. Wyckoff's Market Rating: 5.0
![Live 24 hours silver chart [ Kitco Inc. ]](http://www.kitco.com/images/live/silver.gif)
Julysilver futures prices hit a two-week high overnight, but the bears still havethe slight overall near-term technical advantage. Silver bulls' next upsideprice breakout objective is closing prices above solid technical resistance at $17.00an ounce. The next downside price breakout objective for the bears is closingprices below solid support at $16.00. First resistance is seen at $16.75 andthen at $17.00. Next support is seen at the overnight low of $16.50 and then atthis week’s low of $16.335. Wyckoff's Market Rating: 4.5.
By Jim WyckoffFor Kitco News
Follow @jimwyckoff
jwyckoff@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.