(Kitco News) - Gold and silver prices are solidly lower and hit two-month lows in early U.S. trading Thursday. The precious metals prices remain in tailspins amid better risk appetite, a surging U.S. dollar and rising bond yields. December gold was last down $28.20 at $2,558.50 and December silver was down $0.468 at $30.205.
The U.S. data point of the day saw the producer price index report for October come in at up 0.2%, month-on-month, which was right in line with market expectations. However, internals of the PPI report are being deemed just a bit hot. Wednesday’s consumer price index report also came in as expected, but up-ticked from the previous month’s reading. Reads a Barron’s headline today: “Stock markets are in denial over inflation; why investors face a shock ahead.”
Asian and European stock indexes were mixed 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 higher again and hitting a six-month high. Bloomberg today reported: “Just weeks after China’s President Xi Jinping signed off on a BRICS communique that included a call for reducing use of the dollar, his finance ministry was marketing sovereign bonds denominated in — wait for it — US dollars. Actions speak louder than words, as the old saying goes. For all the de-dollarization fervor, Beijing is demonstrating that it remains dedicated, or at least resigned, to continuing to use greenbacks in international finance.”
Nymex crude oil futures prices are up and trading around $69.00 a barrel. Oil markets face a surplus of more than 1 million barrels a day next year as Chinese demand continues to falter, the International Energy Agency reported.
The yield on the benchmark 10-year U.S. Treasury note is presently 4.461%.
Other U.S. economic data due for release Thursday include the weekly jobless claims report and the weekly DOE liquid energy stocks report. Several Federal Reserve officials also speak today, including Chairman Powell.
Technically, December gold bears have gained the overall near-term technical advantage. Prices are trending down on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $2,650.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support $2,500.00. First resistance is seen at the overnight high of $2,585.80 and then at $2,600.00. First support is seen at the overnight low of $2,541.50 and then at $2,525.00. Wyckoff's Market Rating: 4.0.
December silver futures bears have gained the overall near-term technical advantage. Prices are trending down on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $32.00. The next downside price objective for the bears is closing prices below solid support at $28.00. First resistance is seen at the overnight high of $30.515 and then at $31.00. Next support is seen at $30.00 and then at the overnight low of $29.75. Wyckoff's Market Rating: 4.0.
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