(Kitco News) - Gold prices are modestly lower in midday U.S. trading Wednesday, on some follow-through technical selling pressure from Tuesday's more significant losses. The metals markets showed little reaction to another U.S. inflation report that this time met market expectations. October gold was last down $4.90 at $1,702.20 and December silver was up $0.109 at $19.595.
Today's 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 firmer at midday on tepid corrective bounces. 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.
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| Société Générale sees gold prices falling to $1,550 in 2023 and recovering to $1,900 by 2024 |
The key outside markets today see Nymex crude oil prices higher and trading around $89.75 a barrel. The U.S. dollar index is lower in midday U.S. trading. The yield on the 10-year U.S. Treasury note is fetching around 3.45%.
![Live 24 hours gold chart [Kitco Inc.]](/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, October gold futures bears have the solid overall near-term technical advantage and gained fresh power today. 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 $1,715.00 and then at $1,725.00. First support is seen at this week's low of $1,696.90 and then at $1,686.30. Wyckoff's Market Rating: 1.5.
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
December silver futures bears have the overall near-term technical advantage. 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 today's low of $19.215 and then at $19.00. Wyckoff's Market Rating: 3.0.
December N.Y. copper closed down 370 points at 351.90 cents today. Prices closed nearer the session low today. The copper bears have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the August high of 378.35 cents. The next downside price objective for the bears is closing prices below solid technical support at the July low of 315.55 cents. First resistance is seen at this week's high of 369.25 cents and then at 378.35 cents. First support is seen at 350.00 cents and then at 345.00 cents. Wyckoff's Market Rating: 3.5.
