Gold, silver bulls gaining a head of steam this week

Gold and silver futures prices are firmer and hit two-week highs in midday 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 $7.90 at $1,835.70 and March Comex silver was last up $0.14 at $23.34 an ounce.

Metals traders are awaiting the U.S. data point of the week, which is 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.

Global stock markets were mostly up overnight. U.S. stock indexes are higher at midday. 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.

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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 key outside markets today see crude oil prices a bit higher and trading around $89.75 a barrel. The U.S. dollar index is lower today. The U.S. Treasury 10-year note yield is presently fetching 1.925%.

Technically, April gold futures prices hit a two-week high today. Bulls have the firm overall near-term technical advantage. Bulls' next upside price objective is to produce a close 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 $1,840.00 and then at $1,850.00. First support is seen at today’s low of $1,825.50 and then at $1,816.00. Wyckoff's Market Rating: 7.0

March silver futures prices hit a two-week high today. The silver bulls and bears are now on a level overall near-term technical playing field. Silver bulls' next upside price objective is closing prices above solid technical resistance at $24.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the January low of $21.985. First resistance is seen at $23.48 and then at $23.75. Next support is seen at $23.00 and then at Tuesday’s low of $22.77. Wyckoff's Market Rating: 5.0.

March N.Y. copper closed up 1,435 points at 460.50 cents today. Prices closed near the session high today and hit a 3.5-month high. The copper bulls have the firm overall near-term technical advantage and gained fresh power today. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the October high of 477.70 cents. The next downside price objective for the bears is closing prices below solid technical support at the January low of 428.20 cents. First resistance is seen at today’s high of 461.40 cents and then at 465.00 cents. First support is seen at 455.00 cents and then at 450.00 cents. Wyckoff's Market Rating: 7.0.

By Jim Wyckoff

For Kitco News

Time to buy Gold and Silver on the dips