(Kitco News) - Gold and silver prices are a bit weaker in early U.S. trading Thursday, just ahead of another key U.S. inflation report due out. December gold was last down $3.30 at $3,405.10. September silver prices were down $0.217 at $38.39.
Traders, investors and market watchers today will closely scrutinize the U.S. producer price index report for July, seen coming in at up 0.2%, month-on-month, following an unchanged reading in the June report. The July core PPI (excluding food and energy) is seen coming in up 0.3%, following an unchanged reading in June. Today’s PPI data “could be make or break to cement a 25 basis-point rate cut from the Fed, or even to encourage the possibility of a jumbo cut,” said Andrea Gabellone, head of global equities at KBC Securities in Brussels, in a Bloomberg report. “People are already speaking of a 50 basis-point cut, but I think we will need further labor data to shift the narrative.”
Asian and European stock markets were mixed overnight. U.S. stock indexes are set to open slightly lower when the New York day session begins, on mild profit taking after this week hitting record highs.
In overnight news, President Trump has warned he would impose "very severe consequences" if Russian President Putin does not agree to a ceasefire agreement. Heading into Friday’s summit with Putin, Trump said he hoped to use the meeting to set up a "quick second meeting" with Ukrainian leader Volodymyr Zelenskiy. Trump said he had a good call with European leaders ahead of the summit. Trump assured European leaders he wouldn't negotiate territories with Putin and would push him to meet with Zelenskiy, according to sources briefed on the discussions.
The key outside markets today see the U.S. dollar index slightly lower, with crude oil prices up a bit and trading around $62.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.22%.
Other U.S. economic data due for release Thursday includes the weekly jobless claims report.
Technically, December gold futures bulls have the firm overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,500.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the July low of $3,319.20. First resistance is seen at the overnight high of $3,423.80 and then at $3,450.00. First support is seen at this week’s low of $3,379.10 and then at $3,350.00. 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 July high of $39.91. The next downside price objective for the bears is closing prices below solid support at the July low of $36.28. First resistance is seen at last week’s high of $38.875 and then at $39.00. Next support is seen at $38.00 and then at this week’s low of $37.515. Wyckoff's Market Rating: 7.0.
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