(Kitco News) - Gold prices are modestly higher in early U.S. trading Friday, in the wake of an important monthly U.S. inflation report that corroborated inflation levels are receding. February gold was last up $3.80 at $2,022.20. March silver was last down $0.017 at $22.90.
The U.S. data point of the day, if not the week, is the personal income and outlays report for December, including its inflation components. The data came in close to market expectations but the inflation numbers were slightly cooler than expected. Personal income in December came in at up 0.3% from November, right in line with the consensus forecast. Consumer spending came in up 0.7% from November and was forecast up 0.5%. The PCE core price index came in up 2.9%, year-on-year, and was seen up 3.0%. The PCE inflation numbers are said to be the Federal Reserve’s favorite inflation gauges.
Asian and European stock markets were mixed overnight. U.S. stock index futures are set to open a bit weaker when the New York day session begins. The S&P and Nasdaq indexes have hit record highs this week as risk appetite in the general marketplace has up-ticked recently.
In other news, the Wall Street Journal reports China is accelerating its monetary-policy-easing steps. “Chinese officials have signaled deepening concerns about the economy by unleashing a burst of measures aimed at reviving growth and steadying markets,” said the WSJ story.
The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are weaker and trading around $76.50 a barrel. Meantime, the yield on the benchmark U.S. Treasury 10-year note is presently fetching 4.143%, and up a bit after the PCE data.
Other U.S. economic data due for release Friday includes pending home sales.
Technically, the gold futures bulls have the overall near-term technical advantage but have faded a bit. Prices are still in a three-month-old uptrend on the daily bar chart, but just barely. Bulls’ next upside price objective is to produce a close in March futures above solid resistance at $2,067.30. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at this week’s high of $2,039.30 and then at $2,050.00. First support is seen at this week’s low of $2,004.00 and then at $2,000.00. Wyckoff's Market Rating: 6.0.
The silver bears have the overall near-term technical advantage. Prices hit a three-month low Monday and are in a six-week-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing March futures prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at the October low of $21.17. First resistance is seen at this week’s high of $23.155 and then at $23.50. Next support is seen at Thursday’s low of $22.765 and then at Wednesday’s low of $22.465. Wyckoff's Market Rating: 3.5.
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