(Kitco News) - Gold prices are modestly lower in early U.S. trading Wednesday and have sold off a bit despite a tame reading on U.S. inflation. Profit taking from the shorter-term futures traders is featured. Silver prices are firmer. December gold was last down $8.40 at $2,534.70 and December silver was up $0.251 at $28.865.
The U.S. data point of the week is Wednesday’s consumer price index for August, which came in at up 2.5% annually, compared to forecasts for up 2.6%, year-on-year, and follows the 2.9% rise seen in the July report. The “core” CPI (excluding food and energy) for August was up 3.2% annually, right in line with forecasts, and compares to a rise of 3.2% in the July report. The U.S. producer price index report is out Thursday.
Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed to weaker openings when the New York day session begins. Some analysts are saying the weaker U.S. stock indexes and lower U.S. dollar index overnight, and some selling pressure in overseas stock markets are due in part to perceptions U.S. Vice President Kamala Harris beat former President Donald Trump in their debate Tuesday night.
The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are higher on short covering after hitting a 16-month low Tuesday, trading around $67.50 a barrel. The benchmark 10-year U.S. Treasury note yield is on the decline and is presently fetching 3.672%.
Other U.S. economic data due out Wednesday includes the weekly MBA mortgage applications survey, real earnings and the weekly DOE liquid energy stocks report.
Technically, December gold bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the record high of $2,570.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,475.00. First resistance is seen at $2,550.00 and then at the overnight high of $2,558.00. First support is seen at this week’s low of $2,514.20 and then at the September low of $2,502.70. Wyckoff's Market Rating: 8.0.
December silver futures bulls and bears are on a level overall near-term technical playing field. Silver bulls' next upside price objective is closing prices above solid technical resistance at $30.00. The next downside price objective for the bears is closing prices below solid support at the August low of $26.885. First resistance is seen at the overnight high of $29.215 and then at $29.55. Next support is seen at Tuesday’s low of $28.36 and then at $28.00. Wyckoff's Market Rating: 5.0.
(Hey! My “Markets Front Burner” weekly email report is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. Plus, I’ll throw in an educational feature to move you up the ladder of trading/investing success. And it’s free! Sign up here; it’s real easy. https://www.kitco.com/services
