(Kitco News) - Gold and silver prices are lower in early U.S. trading Thursday, with gold falling to a seven-week low. This week’s strength in the U.S. dollar index, along with rising U.S. Treasury yields and some hotter U.S. inflation data, have all combined to keep gold and silver buyers mostly standing on the sidelines. October gold was last down $16.00 at $1,682.30 and December silver was down $0.189 at $19.38.
Global stock markets were mostly slightly higher overnight. U.S. stock indexes were pointed to slightly lower openings when the New York day session begins. The marketplace is calmer late this week, after absorbing a hot U.S. consumer price index report on Tuesday that jolted markets. Traders are now focusing on next week’s FOMC meeting, which is expected to see the Fed raise the key U.S. Fed funds rate by 0.75% in its effort to tamp down problematic price inflation. Precious metals traders are reckoning the tighter monetary policies of most of the major central banks of the world will slow global economic growth and in turn reduce consumer and commercial demand for metals. Gold and silver bulls remain frustrated that the recent risk aversion in the marketplace did not translate into more safe-haven demand for the two metals.
In overnight news, it appears the Biden administration has warded off a U.S. rail-workers’ strike that could have at least temporarily crippled the U.S. economy.
The key outside markets today see Nymex crude oil prices weaker and trading around $87.50 a barrel. The U.S. dollar index is slightly up in early U.S. trading. The yield on the 10-year U.S. Treasury note is fetching 3.439%.
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| All eye on gold's long-term support as markets see growing chance Fed will raise interest rates by 1% next week |
It’s a very busy day for U.S. economic data due for release Tuesday includes the weekly jobless claims report, weekly USDA export sales, the Empire State manufacturing survey, the Philadelphia Fed business survey, retail sales, import and export price indexes, industrial production and capacity utilization, and manufacturing and trade inventories.
![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 the September high of $1,736.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,650.00. First resistance is seen at the overnight high of $1,696.80 and then at $1,700.00. First support is seen at the overnight low of $1,680.20 and then at $1,675.00. Wyckoff's Market Rating: 1.0
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
September 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 Wednesday’s high of $19.685 and then at $20.00. Next support is seen at Wednesday’s low of $19.215 and then at $19.00. Wyckoff's Market Rating: 3.0.
