Gold, Silver Bulls Working To Stabilize Prices
(Kitco News) - Gold and silver prices are steady to slightly higher in quieter early-afternoon U.S. trading Thursday. Both metals are seeing some stabilization this week after recently notching 12-month lows. December gold futures were last down $0.10 an ounce at $1,220.90. September Comex silver was last up $0.038 at $15.47 an ounce.
Gold got a slight boost following this morning’s U.S. producer price index (PPI) report that came in lower than market expectations. U.S. producer prices in July were unchanged, versus pre-report expectations for a rise of 0.2% from June. This report was the most significant U.S. economic report so far this week. However, the more closely watched consumer price index is due out Friday morning. CPI for July is forecast to come in at up 0.2% from June.
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. Currency markets are not in such as state as to prompt any safe-haven demand for gold and silver, but traders are monitoring FOREX trading conditions closely.
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.