(Kitco News) - Gold prices are a bit lower in early U.S. trading Wednesday following more U.S. inflation data that this time met market expectations for a slight decline. October gold was last down $5.70 at $1,701.80 and December silver was down $0.051 at $19.45.
The just-released U.S. producer price index report for August came in down 0.1%, which was right in line with expectations. The August PPI follows the July PPI reading of down 0.5%. After the CPI report, the marketplace was worried the PPI report would also show a higher-than-expected inflation print, but that was not the case.
Global stock markets were mostly lower overnight, following the rout on Wall Street Tuesday that saw the S&P 500 index post its biggest daily drop in over two years. U.S. stock indexes were pointed to firmer openings when the New York day session begins. Tuesday's hotter-than-expected U.S. consumer price index report "wrong-footed" the marketplace that had been expecting tamer inflation readings. The U.S. dollar index and Treasury yields spiked higher and crude oil sold off on the CPI data, amid ideas the Federal Reserve will have to maintain its aggressive monetary policy stance for longer, in order to tamp down the problematic price inflation.
In overnight news, the Euro zone reported its industrial production in July was down more than expected, at -2.3% from June and -2.4%, year-on-year.
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In other news the International Energy Agency lowered global crude oil demand by 100,000 barrels per day in 2022, to 2 million bpd.
The key outside markets today see Nymex crude oil prices firmer and trading around $87.50 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 3.447%.
Other U.S. economic data due for release Tuesday includes the weekly MBA mortgage applications survey and the weekly DOE liquid energy stocks report.
![Live 24 hours gold chart [Kitco Inc.]](/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, the October gold futures bears have the solid overall near-term technical advantage. Prices are in a downtrend on the daily bar chart. Bulls' next upside price objective is to produce a close above solid resistance at $1,750.00. 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 $1,725.00 and then at this week's high of $1,736.40. First support is seen at this week's low of $1,696.90 and then at $1,686.30. Wyckoff's Market Rating: 2.0
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
September silver futures bears have the overall near-term technical advantage but the bulls have gained some momentum recently. Silver bulls' next upside price objective is closing prices above solid technical resistance at $21.00. The next downside price objective for the bears is closing prices below solid support at $18.00. First resistance is seen at $20.00 and then at $20.25. Next support is seen at the overnight low of $19.215 and then at $19.00. Wyckoff's Market Rating: 3.0.
