(Kitco News) - Gold prices are weaker but up from daily lows following a surprising rise in weekly U.S. jobless claims and after a slight up-tick in the U.S. consumer price index. Silver prices are solidly up. December gold was last down $6.80 at $3,675.10. December silver prices were down $0.385 at $41.98.
Weekly U.S. jobless claims rose by 27,000 from the prior week, to 263,000 and above market expectations for 235,000 claims. Today’s jobless claims report falls into the camp of the monetary policy doves, who want to see more aggressive U.S. interest rate cuts from the Federal Reserve.
Meantime, annual U.S. inflation, as measured by the consumer price index (CPI) picked up in August, rising to 2.9%, year-on-year. That marks the highest rate since January and is up from 2.7% in the July report. Price increases were led by increases in food, used vehicles and new vehicles. CPI rose 0.4% month-over-month, higher than 0.2% in July and above forecasts of a 0.3% rise. Inflation ticking higher after a higher-than-expected increase in producer prices in July was somewhat expected. Core CPI, which does not include food and energy prices, steadied at 3.1%, the same as July and February’s peak. On the month, Core CPI rose 0.3%.
The European Central Bank held its interest rates steady today at its monetary policy meeting. No changes were expected.
The key outside markets today see the U.S. dollar index weaker, while crude oil futures are lower and trading around $62.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.015%.
Technically, December gold futures bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,750.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,550.00. First resistance is seen at the overnight high of $3,687.50 and then at $3,700.00. First support is seen at $3,650.00 and then at this week’s low of $3,621.70. Wyckoff's Market Rating: 8.5.
December silver futures bulls have the solid overall near-term technical advantage. A bull flag or pennant pattern has formed on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $45.00. The next downside price objective for the bears is closing prices below solid support at $38.00. First resistance is seen at this week’s high of $42.355 and then at $43.00. Next support is seen at this week’s low of $41.08 and then at last week’s low of $40.555. Wyckoff's Market Rating: 8.5.
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