Gold, silver see price pauses ahead of Friday U.S. PPI
(Kitco News) - Gold and silver prices are near steady levels in early U.S. trading Thursday. Traders are awaiting the next U.S. inflation data point, which is Friday morning's producer price index report for November. PPI is seen coming in at up 0.2% from October—the same rise as seen in last month's PPI report. February gold was last down $1.00 at $1,797.00 and March silver was up $0.018 at $22.94.
Global stock markets were mostly firmer overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. The U.S. stock index bulls have faded this week as near-term price uptrends on the daily bar charts have been negated.
However, risk sentiment worldwide has up-ticked a bit this week as China has significantly eased up on its strict Covid lockdown measures, suggesting the world's second-largest economy may start to pick up steam at a faster pace now. This element has been supportive to the precious metals market bulls.
In other news, a Barron's headline today reads: "Bitcoin is stagnant…; crypto trading has fallen off a cliff." The crypto bulls were not helped any this week when JP Morgan chief Jamie Dimon said the crypto currencies were a "sideshow" and owning crypto tokens is like "owning a pet rock."
|Another year of Crypto Winter likely before turnaround - Anastasios Papakonstantinou|
The key outside markets today see the U.S. dollar index slightly firmer after hitting a 3.5-month low earlier this week. Nymex crude oil prices are higher trading around $73.75 a barrel. Prices Wednesday hit an 11-month low. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently 3.45%.
U.S. economic data due for release Thursday is light and includes the weekly jobless claims report.
Technically, the gold futures bulls have the overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart. Bulls' next upside price objective is to produce a close in February futures above solid resistance at the August high of $1,836.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,750.00. First resistance is seen at $1,806.00 and then at this week's high of $1,822.90. First support is seen at this week's low of $1,778.10 and then at $1,770.00. Wyckoff's Market Rating: 6.5
The silver bulls have the overall near-term technical advantage. A choppy, three-month-old uptrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing March futures prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at $20.79. First resistance is seen at $23.50 and then at this week's high of $23.69. Next support is seen at $22.50 and then at this week's low of $22.19. Wyckoff's Market Rating: 6.5.