Gold, silver rally on tame U.S. CPI, safe-haven buying

NEW YORK (March 12) Gold and silver prices are solidly up and hit two- and three-week highs, respectively, in midday U.S. trading following a U.S. inflation report that came in just a bit cooler than expected. Safe-haven demand for the two precious metals remains in place amid global trade friction that could produce slowing world economic growth. April gold was last up $20.40 at $2,941.30. May silver prices were last up $0.538 at $33.68.

Today’s U.S. data point of the week saw the consumer price index report for February come in at up 2.8%, year-on-year. The CPI report was seen coming in at up 2.9%, year-on-year, versus a rise of 3.0 in the January report. The producer price index report comes out Thursday and is seen up 0.3%, month-on-month, compared to a rise of 0.4% in the January report. The U.S. dollar index lost most of its overnight gains following the CPI report.

U.S. stock indexes are higher at midday but down from session highs, on corrective bounces following recent selling pressure that pushed the major indexes to multi-month lows. Traders and investors are still anxious regarding the seemingly near-daily changes in U.S. trade tariffs policy, and the retaliations by U.S. trading partners. Reads a Wall Street Journal headline today: “Tariff drama drags on; stock markets need a return of Trump the dealmaker.”

The key outside markets today see the U.S. dollar index slightly higher. Nymex crude oil futures prices are higher and trading around $67.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.3%.

KitcoNews