Gold Gets Modest Lift From PPI Miss
(Kitco News) - Gold prices are modestly higher in early U.S. dealings Thursday. The yellow metal got a slight boost following a U.S. producer price index (PPI) report that came in lower than market expectations. December gold futures were last up $2.90 an ounce at $1,223.80. September Comex silver was last up $0.068 at $15.495 an ounce.
U.S. producer prices in July were unchanged, versus pre-report expectations for a rise of 0.2% from June. This report is the most significant U.S. economic report so far this week. The consumer price index is due out Friday morning.
Global stock markets were mixed overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins.
The Russian ruble hit a two-year low against the U.S. dollar overnight as the U.S. hit Russia with new economic sanctions. The Turkish lira fell to another record low against the greenback. The British pound is under pressure on Brexit uncertainties.
The key “outside markets” today find the U.S. dollar index slightly up and crude oil prices near steady and trading around $67.00 a barrel.
Other U.S. economic data due for release Thursday includes the weekly jobless claims report, monthly chain store sales and monthly wholesale trade.
Technically, gold bears have the solid overall near-term technical advantage amid a price downtrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close in December futures above solid resistance at $1,244.70. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at this week’s high of $1,226.00 and then at $1,230.00. First support is seen at last week’s low of $1,212.50 and then at $1,200.00. Wyckoff's Market Rating: 1.5
September 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 $15.75 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.00. First resistance is seen at last week’s high of $15.635 and then at $15.75. Next support is seen at last week’s low of $15.25 and then at the July low of $15.185. Wyckoff's Market Rating: 1.5.