(Kitco News) - Gold and silver prices are slightly lower in early U.S. trading Wednesday. The precious metals bulls are timid at mid-week after another economic report out of China that suggests less consumer demand for goods and services, which includes metals. December gold was last down $2.00 at $1,957.90 and September silver was down $0.062 at $22.745.
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There was more downbeat economic data coming out of China at mid-week. The second-largest global economy has slipped into deflation territory for the first time in two years, due to weaker consumer demand. Chinese consumer prices fell 0.3% in July, year-on-year. The reading was in line with market expectations.
Asian and European stock markets were mixed to firmer in overnight trading. U.S. stock indexes are pointed to firmer openings when the New York day session begins.
Key U.S. inflation reports this week are also in focus for the marketplace. The July U.S. consumer price index it out Thursday and the producer price index is out Friday. Both the CPI and PPI are expected to uptick just a bit from the June reports.
The key outside markets today see the U.S. dollar index slightly lower. Nymex crude oil prices are higher and trading around $83.75 a barrel. Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching 3.998%.
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| China buys 23 tonnes of gold in July, analysts say PBOC is just getting started |
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey and the DOE liquid energy stocks report.
![Live 24 hours gold chart [Kitco Inc.]](/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, the gold futures bears have the overall near-term technical advantage. Prices are in a three-week-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the June low of $1,939.20. First resistance is seen at the overnight high of $1,966.10 and then at Tuesday’s high of $1,972.80. First support is seen at last week’s low of $1,954.50 and then at $1,950.00. Wyckoff's Market Rating: 4.0.
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
The silver bears have the overall near-term technical advantage. Prices are trending lower on the daily bar chart. Silver bulls' next upside price objective is closing September futures prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at the June low of $22.34. First resistance is seen at $23.00 and then at Tuesday’s high of $23.255. Next support is seen at $22.50 and then at the June low of $22.34. Wyckoff's Market Rating: 4.0.
