(Kitco News) - Gold and silver prices are slightly weaker in early U.S. trading Friday and have lost modest overnight gains following a mildly hotter-than-expected U.S. inflation report. December gold was last down $0.80 at $1,948.00 and September silver was down $0.086 at $22.73.
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The just-released U.S. producer price index for July came in at up 0.3% from June. The PPI was seen coming in at up 0.2% from June and compares to a revised 0.0% reading in the June report. The core PPI, excluding food and energy, rose 0.3%, compared to a forecast rise of 0.2%. Today’s PPI report falls mildly into the camp of the U.S. monetary policy hawks.
Thursday’s July consumer price index report was slightly tamer than expected. The report solidified notions the Federal Reserve will stand pat on raising interest rates at its September FOMC meeting. There is a growing camp of Fed watchers that believes the U.S. economy has turned the corner on tamping down problematic inflation faster than many expected and that it may be that no further interest rate increases are necessary. Others say it’s too soon to tell.
Asian and European stock markets were mostly lower in overnight trading. U.S. stock indexes are pointed to weaker openings when the New York day session begins. The U.S. stock indexes have hit a speed bump in August, after enjoying a summertime rally. The historically stock-market-turbulent months of September and October lie just ahead.
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The key outside markets today see the U.S. dollar index slightly higher. Nymex crude oil prices are slightly up and trading around $83.25 a barrel. Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching 4.131%--up a bit following the PPI report.
Other U.S. economic data due for release Friday includes the University of Michigan consumer sentiment survey.
![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 Thursday’s high of $1,963.50 and then at Tuesday’s high of $1,972.80. First support is seen at the overnight low of $1,942.70 and then at $1,939.20. 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 Thursday’s high of $23.06 and then at $23.255. Next support is seen at $22.50 and then at the June low of $22.34. Wyckoff's Market Rating: 4.0.
