Gold, silver rally on weaker USDX, better demand hopes
Gold and silver prices are higher near midday Tuesday amid a weaker U.S. dollar index that dropped to a six-week low overnight. Once gain and somewhat ironically, improved risk appetite in the general marketplace is helping out the safe-haven metals—on ideas of better consumer and commercial demand and lessening inflation due to U.S.-Iran truce talks possibly resuming. June gold was last up $63.50 at $4,831.50. May silver prices were up $3.59 at $79.27.
Today’s U.S. producer price index increased by 0.5%, month-over-month, in March 2026, matching the previous period’s growth and falling short of market expectations of 1.1%. There was an 8.5% jump in energy costs, largely attributed to the ongoing Iran conflict. Year-over-year, U.S. producer prices rose 4%, the largest increase since February 2023 but still below the expected 4.6% rise. The core index, excluding food, energy, and trade services, edged up 0.2% month-over-month, slower than the 0.5% gains seen in both January and February, and climbed 3.6% year-over-year. The report had little impact on metals markets prices.
The key outside markets see Nymex WTI crude oil prices solidly lower and trading around $93.50 a barrel. The U.S. dollar index is weaker. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.25 percent.
Note: The gold market operates through two primary pricing mechanisms. The first is the spot market, which quotes prices for on-the-spot purchase and immediate delivery. The second is the futures market, which sets prices for delivery at a future date. Due to year-end positioning market liquidity, the December gold futures contract is currently the most actively traded on the CME.
Technically, June gold futures bulls’ next upside price objective is to produce a close above solid resistance at $5,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $4,500.00. First resistance is seen at last week’s high of $4,888.00 and then at $4,900.00. First support is seen at today’s low of $4,767.50 and then at $4,700.00. Wyckoff's Market Rating: 6.0.
May silver futures bulls see their next upside price objective is closing prices above solid technical resistance at $80.00. The next downside price objective for the bears is closing prices below solid support at the March low of $61.21. First resistance is seen at $80.00 and then at $82.50. Next support is seen at $77.00 and then at $75.00. Wyckoff's Market Rating: 6.0
