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Gold price weaker following another tamer U.S. inflation report

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(Kitco News) - Gold and silver prices are modestly down in early U.S. trading Thursday, following another U.S. inflation report that came in not as hot as the marketplace expected. Such has lifted trader and investors risk appetite late this week, and that’s a negative for the safe-haven metals. October gold futures were last down $2.60 at $1,800.70. September Comex silver futures were last down $0.232 at $20.50 an ounce.

The just-released U.S. producer price index report for July come in down 0.5%, compared to forecasts of up 0.2% from June and compares to the June PPI report’s rise of 1.1% from May. Year-on-year the July PPI was up 9.8%, which is still hot.

Global stock markets were mostly flat overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. Risk appetite is a bit keener late this week following Wednesday’s slightly tamer U.S. consumer price index report for July that came in unchanged from June and up 8.5% year-on-year. That number is also hot but not as hot as expected and when considering today’s decline in PPI, is prompting some early speculation in the marketplace that inflationary pressures may be peaking and will trend down in the coming months.

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The key outside markets today see Nymex crude oil prices firmer and trading around $93.00 a barrel. The U.S. dollar index is lower in early U.S. trading. The yield on the 10-year U.S. Treasury note is fetching 2.754%.

Other U.S. economic data due for release Thursday includes the weekly jobless claims report.

Live 24 hours gold chart [Kitco Inc.]

Technically, the October gold futures bears have the overall near-term technical advantage. However, a price uptrend is in place on the daily bar chart to suggest a market bottom is in place. Bulls’ next upside price objective is to produce a close above solid resistance at $1,850.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the July low of $1,686.30. First resistance is seen at this week’s high of $1,814.40 and then at $1,825.00. First support is seen at today’s low of $1,788.50 and then at this week’s low of $1,776.20. Wyckoff's Market Rating: 4.0

Live 24 hours silver chart [ Kitco Inc. ]

September silver futures bears have the overall near-term technical advantage. However, bulls have gained some momentum this week to suggest more upside in the near term. Silver bulls' next upside price objective is closing prices above solid technical resistance at $22.00. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at this week’s high of $20.83 and then at $21.00. Next support is seen at $20.315 and then at $20.00. Wyckoff's Market Rating: 3.5.

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.