Make Kitco Your Homepage

Price pressure on gold, silver after another hot U.S. inflation report

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - Gold and silver prices are lower in early U.S. trading Thursday, following another hot U.S. inflation report. The precious metals are seeing selling pressure after the U.S. dollar index rebounded from overnight losses and U.S. bond yields have up-ticked following the report. December gold was last down $16.10 at $1,662.00 and December silver was down $0.443 at $18.485.

The just released and highly anticipated U.S. consumer price index report for September showed a rise of 0.4% from August, which was just above the expected rise of 0.3%. Year-on-year, the CPI was up 8.2%. The report was expected to come in at up 8.1%, year-on-year, following a rise of 8.3% in August. On Wednesday the U.S. got a hot producer price index reading for September, at up 8.5%, year-on-year. U.S. Federal Reserve officials have recently reiterated their aggressively hawkish stance on monetary policy, which has kept the general marketplace uneasy, for fear of pending U.S. and/or global recession. Today’s CPI report suggests the Fed is correct regarding its belief that inflation is still not under control.

Global stock markets were mixed to weaker overnight. U.S. stock indexes are pointed to solidly lower openings when the New York day session begins, following the hot U.S. inflation data. The stock indexes had been pointing to higher openings before the CPI report.

Before the CPI data, risk appetite in the general marketplace had up-ticked just a bit on reports the U.K. government is going to roll back its controversial tax and spending plans that had roiled the financial markets the past two weeks. The British pound rallied and U.K. bond yields fell on the news. The U.S. dollar index sold off and U.S. Treasuries yields dipped on the news.

Gold is a 2023 story, but these are the currencies to buy it in right now

The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are a bit firmer and trading around $87.75 a barrel. The U.S. Treasury 10-year note yield is presently fetching 3.977%.   

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

Live 24 hours gold chart [Kitco Inc.]

Technically, the December gold futures bears have the solid overall near-term technical advantage and have regained power. Bulls’ next upside price objective is to produce a close above solid resistance at the October high of $1,738.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the September low of $1,622.20. First resistance is seen at the overnight high of $1,688.90 and then at $1,700.00. First support is seen at $1,650.00 and then at $1,635.00. Wyckoff's Market Rating: 2.0

Live 24 hours silver chart [ Kitco Inc. ]

September silver futures bears have the firm overall near-term technical advantage and have momentum. Silver bulls' next upside price objective is closing prices above solid technical resistance at the October high of $21.31. The next downside price objective for the bears is closing prices below solid support at the September low of $17.40. First resistance is seen at $19.00 and then at the overnight high of $19.29. Next support is seen at $18.25 and then at $18.00. Wyckoff's Market Rating: 2.5.

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.