(Kitco News) - Gold and silver prices are solidly lower in early U.S. trading Friday and hit daily lows in the immediate aftermath of a U.S. inflation report that came in hotter than expected. The two precious metals extended their overnight losses that came after sharp gains posted Thursday. August gold was last down $23.00 at $2,398.60. September silver was down $0.966 at $30.70.
The U.S. data point of the day sees the June producer price index report coming in hotter than expected. The PPI was up 0.2%, month-on-month, versus expectations of up 0.1%. The “core” PPI (excluding food and energy) was up 0.4%, month-on-month, versus market expectations of up 0.1%. The May PPI was revised to unchanged from down 0.2% in the initial reading.
Today’s PPI report follows Thursday’s consumer price index report for June that showed tamer inflation. Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed toward mixed openings when the New York day session begins.
The S&P 500 and the Nasdaq hit record highs Thursday and then backed off on profit taking.
The key outside markets today see the U.S. dollar index a bit weaker.
Nymex crude oil prices are higher and trading around $83.25 a barrel. The benchmark 10-year U.S. Treasury note yield is presently 4.216%.
Other U.S. economic reports out Friday include the University of Michigan consumer sentiment survey.
Technically, August gold bulls have the firm overall near-term technical
advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the May contract high of $2,477.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the June low of $2,304.20. First resistance is seen at the overnight high of $2,421.80 and then at this week’s high of $2,430.40. First support is seen at today’s low of $2,396.90 and then at Thursday’s low of $2,376.80. Wyckoff's Market Rating: 7.0.
September silver futures bulls have the firm overall near-term technical advantage. Silver bulls' next upside price objective is closing prices
above solid technical resistance at the May high of $33.05. The next
downside price objective for the bears is closing prices below solid
support at the June low of $28.90. First resistance is seen at $31.00 and then at $31.50. Next support is seen at today’s low of $30.62 and then at $30.45. Wyckoff's Market Rating: 7.0.
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