(Kitco News) – Gold prices are modestly down and silver prices firmer in midday U.S. trading Thursday. Both markets are off their daily lows. Precious metals markets were hit today by a surprisingly deflationary report coming out of China. U.S. stock index prices that this week set record highs are also a negative element for the safe-haven metals. April gold was last down $6.10 at $2,045.60. March silver was last up $0.19 at $22.55.
China, the world’s second-largest economy, reported its consumer price index fell a sharper-than-expected 0.8%, year-on-year, in January. That’s the fourth consecutive month of declines and the biggest contraction since 2009. China is facing “significant economic headwinds that could impact investors around the world,” said Nigel Green, the CEO of deVere Group. “Prolonged deflation in China poses a threat to its manufacturing and export sectors, key drivers of that nation’s economic growth and sectors often favored by international investors. The deflationary trend in China could also weigh heavily on commodities and industries dependent on natural resources.”
China is getting ready for its Lunar New Year holiday that starts this weekend.
U.S. stock index futures are mixed near midday, on mild corrective pullbacks following their record highs set Wednesday.
The key outside markets are mixed for the metals today. The U.S. dollar index is firmer. Nymex crude oil prices are solidly higher and trading around $76.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 4.158%.
Technically, April gold futures bulls have the slight overall near-term technical advantage amid choppy trading recently. Bulls’ next upside price objective is to produce a close above solid resistance at $2,100.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at today’s high of $2,053.80 and then at this week’s high of $2,061.30. First support is seen at today’s low of $2,034.60 and then at this week’s low of $2,030.80. Wyckoff’s Market Rating: 5.5.
March silver futures prices scored a mildly bullish outside day up today. The silver bears have the overall near-term technical advantage. A two-month-old downtrend is in place on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at the October low of $21.17. First resistance is seen at this week’s high of $22.84 and then at $23.00. Next support is
seen at today’s low of $22.195 and then at $22.00. Wyckoff’s Market Rating: 3.0.
March N.Y. copper closed down 465 points at 368.90 cents today. Prices closed nearer the session low today and hit a seven-week low. The copper bears have the overall near-term technical advantage. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 390.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the October low of 355.75 cents. First resistance is seen at today’s high of 376.30 cents and then at 380.00 cents. First support is seen at today’s low of 367.90 cents and then at 362.60 cents. Wyckoff’s Market Rating: 3.0.
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