(Kitco News) - Gold and silver prices are higher in early U.S. trading Wednesday, following a U.S. inflation report that came out right in line with market expectations. The two precious metals markets today are seeing corrective rebounds from recent strong selling pressure that did produce near-term technical damage. The key outside markets are also friendly for the metals markets at mid-week, as the U.S. dollar index is lower, crude oil prices higher, and U.S. Treasury yields have slightly down-ticked. December gold was last up $11.20 at $2,617.00 and December silver was up $0.291 at $31.065.
The just-released U.S. data points of the week saw the consumer price index for October come in just as expected, at up 2.6%, year-on-year, compared to a reading of up 2.4% in the September report. The “core” CPI (excluding food and energy) was also right in line with market expectations, at up 0.3%, month-on-month. While in line with trade expectations, the takeaway from today’s CPI report is that inflation is ticking back up a bit but is not deemed problematic.
Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed to slightly higher openings when the New York day session begins and rallied slightly after the CPI data.
The key outside markets today see the U.S. dollar index lower after hitting a six-month high overnight. Nymex crude oil futures prices are slightly up and trading around $68.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.38%, down a bit after the CPI report.
Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, real earnings and the monthly Treasury budget statement. Several Federal Reserve officials also are slated to speak today.
Technically, December gold bulls and bears are on a level overall near-term technical playing field but the bears have momentum. Prices are trending down on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $2,700.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support $2,500.00. First resistance is seen at Tuesday’s high of $2,633.40 and then at $2,650.00. First support is seen at the overnight low of $2,603.70 and then at the overnight low of $2,595.70. Wyckoff's Market Rating: 5.0.
December silver futures bulls and bears are on a level overall near-term technical playing field. However, prices are trending down on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $32.50. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen at the overnight high of $31.255 and then at this week’s high of $31.66. Next support is seen at the overnight low of $30.75 and then at this week’s low of $30.28. Wyckoff's Market Rating: 5.0.
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