Gold trades near steady as bulls stabilize market
(Kitco News) - Gold prices are trading near steady in midday U.S. dealings Thursday. Importantly, gold bulls have stabilized the market following recent selling pressure that drove prices to a more-than-four-month low on Monday. Silver bulls still have some more work to do to steady their market. October gold futures were last down $0.70 at $1,750.60 and September Comex silver was last down $0.323 at $23.16 an ounce.
The U.S. got another inflation reading today, as the producer price index for July came in hotter than expected, at up 1.0% from June. The PPI was forecast at up 0.6% from June after rising by 1.0% in June from May. On an annual basis, PPI in July was up 7.8%. The metals and other markets did not react significantly to the hotter PPI. Recent U.S. and some global inflation readings have been running hotter than forecast, so today’s PPI number was probably not surprising to many.
Global stock markets were mixed overnight, with European indexes firmer and at or near record highs and Asian shares a bit weaker. The U.S. stock indexes are mixed at midday and are at or near their record highs. The summertime doldrums are presently the feature in the marketplace—not surprising for mid-August, when families are taking vacations just before school starts and as most of Europe is on holiday.
The key outside markets today see the U.S. dollar index slightly up after hitting a 4.5-month high Wednesday. Nymex crude oil futures prices are near steady and trading around $69.25 a barrel. The OPEC oil cartel said the new Delta Covid variant will likely dent global crude oil demand growth in 2021 and 2022. The International Energy Agency today also cut world oil demand growth in 2021, by 100,000 barrels per day, to 5.3 million barrels per day. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.366%.
Technically, October gold futures bulls have stabilized the market late this week after prices hit a more-than-four-month low on Monday. The gold bears still have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at this week’s low of $1,676.40. First resistance is seen at this week’s high of $1,763.00 and then at $1,775.00. First support is seen at Wednesday’s low of $1,724.30 and then at Tuesday’s low of $1,716.50. Wyckoff's Market Rating: 4.0
September silver futures prices hit a more-than-eight-month low Monday. The silver bears have the firm overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00 an ounce. The next downside price objective for the bears is closing prices below solid support at this week’s low of $22.295. First resistance is seen at Tuesday’s high of $23.675 and then at $24.00. Next support is seen at today’s low of $22.97 and then at $22.50. Wyckoff's Market Rating: 3.0.
September N.Y. copper closed down 125 points at 435.50 cents today. Prices closed nearer the session low today. The copper bulls have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the July high of 462.75 cents. The next downside price objective for the bears is closing prices below solid technical support at the June low of 409.40 cents. First resistance is seen at today’s high of 441.60 cents and then at 445.00 cents. First support is seen at Tuesday’s low of 428.40 cents and then at this week’s low of 424.35 cents. Wyckoff's Market Rating: 6.0.