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(Kitco News) – Gold and silver prices are lower in midday U.S. trading Tuesday. The precious metals traders were stymied today as selling pressure accelerated after another U.S. inflation report ran hot. History shows that rising and problematic price inflation has been bullish for the hard-asset metals. Maybe traders today decided to focus more on the daily bearish elements of a firmer U.S. dollar index and a drop in crude oil prices. However, the metals sold off before the USDX saw most of its gains and before crude oil saw most of its losses. February gold was last down $13.90 at $1,774.40 and March Comex silver was last down $0.413 at $21.915 an ounce.
Today’s November producer price index report showed a rise of 0.8% from October and a rise of 9.6%, year-on-year. U.S. stock indexes also sold off on that news, yet gold and silver could muster no safe-haven demand. Today is one of those trading days that has many metals watchers scratching their heads. It reminds that futures traders are indeed fickle.
All of the major central banks hold monetary policy meetings this week. The Federal Reserve’s FOMC meeting began Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chairman Jerome Powell. The FOMC is expected to announce the acceleration of asset purchases tapering as the U.S. now has the hottest inflation in nearly 40 years. Today’s PPI report falls into the camp of the U.S. monetary policy hawks.
Global stock markets were mixed in overnight trading, with European shares mostly up and Asian shares mostly down.
The key “outside markets” today see Nymex crude oil prices lower and trading around $69.85 a barrel. The U.S. dollar index is firmer at midday today. Meantime, the yield on the U.S. Treasury 10-year note is presently fetching 1.441%.
![Live 24 hours gold chart [Kitco Inc.]](/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, February gold futures bulls have lost their the slight overall near-term technical advantage as trading turns choppy and sideways trading. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,761.00. First resistance is seen at today’s high of $1,789.80 and then at last week’s high of $1,794.30. First support is seen at today’s low of $1,766.10 and then at $1,761.00. Wyckoff’s Market Rating: 5.0
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
March silver futures prices hit another nine-week low today. The silver bears have the solid overall near-term technical advantage. Prices are in a four-week-old downtrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $23.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the September low of $21.46. First resistance is seen at this week’s high of $22.43 and then at last week’s high of $22.625. Next support is seen at today’s low of $21.67 and then at $21.46. Wyckoff’s Market Rating: 1.5.
March N.Y. copper closed down 300 points at 425.50 cents today. Prices closed near the session low today. The copper bulls and bears are on a level overall near-term technical playing field amid recent choppy trading. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the November high of 451.15 cents. The next downside price objective for the bears is closing prices below solid technical support at the November low of 420.00 cents. First resistance is seen at this week’s high of 433.30 cents and then at 436.00 cents. First support is seen at 425.00 cents and then at 420.00 cents. Wyckoff’s Market Rating: 5.0.
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.