The price of gold rises as US consumer inflation warms

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(Kitco News) – Gold and silver prices show good gains in the early US action on Tuesday, in the wake of another US inflation report that ran hot and is considered problematic. Gold futures in June last rose $ 24.50 to $ 1,972.60, and May Comex silver was last up $ 0.513 to $ 25,495 per ounce.

The just-released US data point for the week saw the consumer price index for March rise by 8.5% year-on-year, the highest level in 40 years. The March CPI was expected to rise to 8.4% annually. On Wednesday, the US producer price index report for March comes out.

Global stock markets were mixed overnight. US stock indices point to tight-knit openings as the New York Day session begins. On the front lines of Russia’s invasion of Ukraine, the United States has now warned that the war will take a longer and bloodier turn. Reports said European countries are now focusing more on arming the Ukrainians and less on adding economic sanctions against Russia.

The Covid pandemic continues to rise in China, the world’s second largest economy. Broker SP Angel said today in an email broadcast: “Strict Shanghai lockdown has put other Chinese cities on edge. All residents of Shanghai have been in a strict lockdown since last Tuesday as Covid cases rise and the government doubles their ‘ zero covid ‘strategy. Residents have been left without food or medicine, which has led to protests and general unrest. Shanghai is the most populous city in China and is believed to contribute 3.5% of the country’s total GDP. It is believed that now “Over 70 of China’s largest 100 cities are suffering from some form of lockdown. Panic shopping is sweeping through the cities, with officials in the southern port city of Guangzhou urging residents to stop excessive shopping when a local newspaper suggested shortages were imminent.”

Future prices of Nymex crude oil are solidly higher today and are trading around $ 98.00 per barrel. The US dollar index is stronger early today and hit another two-year high last night. The yield on the 10-year US government bond is currently at 2.792% and is at a high of more than three years.

Other US economic data to be released on Tuesday include the NFIB Small Business Index, Real Earnings, Johnson Redbook and Weekly Chain Reports, the IBD / TIPP Index for Economic Optimism and the Monthly Fiscal Budget Statement.

Technically, the June gold futures bulls have the overall technical advantage in the short term. The Bulls’ next upside price target is to produce a close in April futures over major resistance of $ 2,000.00. The Bears’ next short-term downside price target is to push futures prices below solid technical support at the March low of $ 1,893.20. First resistance is seen at $ 1,975.00 and then at $ 2,000.00. First support is seen at $ 1,950.00 and then at this week’s lowest value of $ 1,942.90. Wyckoff Market Assessment: 6.5

Live 24 hour silver chart [ Kitco Inc. ]

May silver futures bulls have the overall technical advantage in the short term. The Silver Bulls’ next upside price target is to close prices above solid technical resistance of $ 26.16 an ounce. The next downward price target for the Bears is to close prices below solid support at the March low of $ 24,045. First resistance is seen at this week’s high of $ 25.60 and then at $ 26.00. Next support is seen at $ 25.00 and then at this week’s lowest at $ 24,795. Wyckoff Market Assessment: 6.5.

Disclaimer: The views expressed in this article are those of the author and may not reflect them Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. or the author guarantees such accuracy. This article is for informational purposes only. It is not a solicitation to make any exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article does not accept liability for losses and / or damages arising from the use of this publication.

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