Gold holding price gains ahead of U.S. inflation report
(Kitco News) - Gold and silver prices are higher in subdued early U.S. trading Friday. Traders are awaiting the U.S. data point of the week this morning: the 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. A significant miss on the consensus forecast is likely to produce some initially active trading in many markets, including gold and silver. February gold was last up $10.80 at $1,812.30 and March silver was up $0.034 at $23.28.
Global stock markets were mostly higher overnight. U.S. stock indexes are pointed toward slightly higher 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 appetite this week increased mildly as China has eased up on its strict Covid lockdown measures, suggesting the world’s second-largest economy may start to grow at a faster pace.
The key outside markets today see the U.S. dollar index slightly lower. Nymex crude oil prices are modestly higher trading around $72.00 a barrel. Prices Thursday hit an 11-month low. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently 3.492%.
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Other U.S. economic data due for release Friday includes monthly wholesale trade and the University of Michigan consumer sentiment survey.
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 this week’s high of $1,822.90 and then at $1,836.70. First support is seen at $1,800.00 and then at Thursday’s low of $1,793.20. Wyckoff's Market Rating: 6.5
The silver bulls have the firm 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 the overnight high of $23.525 and then at this week’s high of $23.69. Next support is seen at $23.00 and then at Thursday’s low of $22.725. Wyckoff's Market Rating: 6.5.