(Kitco News) - Gold and silver prices are moderately up and near daily highs in early U.S. trading Thursday, following the release of the U.S. producer price index report that is not being deemed problematic on inflation. December gold was last up $11.70 at $2,553.80 and December silver was up $0.267 at $29.205.
The U.S. data point of the day saw the producer price index for August come in at up 0.2% from July versus expectations for a 0.2% rise and compares to up 0.1% seen in the July report, from June. The “core” August PPI (excluding food and energy) came in at up 0.3% from July and was seen coming in at up 0.2% after being unchanged in the July report. The tame PPI report today follows Wednesday’s as-expected consumer price index report that was also tame.
Meantime, the European Central Bank today lowered its main interest rate by 0.25%, to 3.5%. The rate cut was expected by the marketplace.
Asian and European stock indexes were mostly firmer overnight. U.S. stock indexes are pointed to mixed openings when the New York day session begins.
The key outside markets today see the U.S. dollar index slightly up. Nymex crude oil prices are higher on short covering after hitting a 16-month low Tuesday, and trading around $68.50 a barrel. A hurricane in the Gulf of Mexico has shut in some crude production in the region. The International Energy Agency today said global oil demand growth continues to decelerate. The benchmark 10-year U.S. Treasury note yield is on the decline and is presently fetching 3.67%.
Other U.S. economic data due out Thursday includes the weekly jobless claims report and the monthly Treasury budget statement.
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 this week’s high of $2,558.00 and then at the contract high of $2,570.40. First support is seen at Wednesday’s low of $2,529.00 and then at this week’s low of $2,514.20. Wyckoff's Market Rating: 8.5.
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 the August high of $30.67. 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 $29.55 and then at $30.00. Next support is seen at Wednesday’s low of $28.39 and then at $28.00. Wyckoff's Market Rating: 5.0.
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