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Gold Prices Up After U.S. Data Releases

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(Kitco News) - Gold prices are posting a modest rally after the release of some U.S. economic data, including a very tame inflation report. Some more short covering in the futures markets (the buying back of previously sold, or short, positions) is featured in gold and silver today. December gold futures were last up $3.60 an ounce at $1,214.60. December Comex silver was last up $0.027 at $14.325 an ounce.

The just-released August consumer price index came in at up 0.2% versus expectations of up 0.3% from July. The producer price index on Wednesday also came in lower than expected. The U.S. dollar index was slightly pressured by the latest inflation report.

Today the European Central Bank met and left its monetary policy unchanged. The Bank of England also held its regular monetary policy meeting Thursday, and also left interest rates unchanged.

Reports said the Turkish central bank raised its key interest rate by a whopping 6.25% today, in an effort to prop up its eroding currency, the lira.

World stock markets were mixed to mostly higher overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. The marketplace sees trader and investor attitudes remaining generally upbeat. Traders are watching for the latest developments on the U.S.-China trade war front, after the U.S. on Thursday reportedly made an overture to China to restart negotiations later this month. Reports Wednesday also said the U.S. and Canada are close to reaching a trade deal.

The other key outside market today finds Nymex crude oil prices lower on some profit taking and trading around $69.50 a barrel.

Other U.S. economic data due for release Thursday includes the weekly jobless claims report, real earnings, and the monthly Treasury budget statement.

Live 24 hours gold chart [Kitco Inc.]

Technically, gold bears still have the firm overall near-term technical advantage. However, recent sideways price action favors the bulls and begins to suggest a market bottom is in place. Gold bulls' next upside near-term price breakout objective is to produce a close in December futures above solid resistance at $1,220.70. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the August low of $1,167.10. First resistance is seen at $1,220.70 and then at $1,225.00. First support is seen at today’s low of $1,208.60 and then at $1,200.00. Wyckoff's Market Rating: 2.5

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures bears have the solid overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $15.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $13.50. First resistance is seen at $14.405 and then at $14.59. Next support is seen at this week’s low of $13.965 and then at $13.75. Wyckoff's Market Rating: 1.5.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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