Gold, silver a bit weaker following warm U.S. inflation report
Gold and silver prices are slightly down in midday U.S. trading Thursday, following a U.S. consumer inflation reading that was just a bit higher than expected. The markets also saw routine corrective pullbacks from recent price gains. December gold was last down $2.90 at $1,884.20 and December silver was down $0.183 at $21.95.
Focus today was on a key U.S. inflation report: the consumer price index report for September. The CPI rose by 3.7% compared to the previous year–higher than the consensus estimate of up 3.6%. On a monthly basis, consumer prices advanced by 0.4%, easing from a 0.6% gain in August but exceeding market expectations of 0.3%. Core CPI, excluding food and energy prices, also increased by 0.3% for the month and 4.1% on a 12-month basis, aligning with expectations. It marked the lowest reading since September 2021. The slightly warmer-than-expected CPI reading today slightly dented bullish enthusiasm in the precious metals markets. Still, the safe-haven bid amid the elevated Middle East tensions is likely to at least keep a floor under gold and silver prices.
Asian and European stocks were mostly higher overnight. U.S. stock indexes are mixed at midday. The U.S. stock indexes this week are “climbing a wall of worry” as the turmoil in the Middle East is on the front burner of the marketplace.
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September sell-off presents buying opportunity for gold investors – WGC
The key outside markets today see the U.S. dollar index solidly higher, which was also a daily negative for the metals. Nymex crude oil prices are slightly higher and trading around $83.75 a barrel. The yield on the benchmark U.S. Treasury 10-year note yield is presently fetching 4.651%.
Technically, December gold futures still see very early clues that a market bottom is in place. However, the bears still have the firm overall near-term technical advantage. A five-month-old price downtrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at $1,900.00 and then at $1,913.60. First support is seen at Wednesday’s low of $1,871.70 and then at this week’s low of $1,857.50. Wyckoff's Market Rating: 3.0
December silver futures prices scored a bearish “outside day” down today. The silver bears have the overall near-term technical advantage. A 2.5-month-old downtrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $23.00. The next downside price objective for the bears is closing prices below solid support at the March low of $20.615. First resistance is seen at today’s high of $22.39 and then at $22.555. Next support is seen at this week’s low of $21.705 and then at $21.50. Wyckoff's Market Rating: 3.0.
December N.Y. copper closed down 215 points at 359.05 cents today. Prices closed nearer the session low. The copper bears have the solid overall near-term technical advantage. Prices are in a choppy, two-month-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at last week’s high of 378.60 cents. The next downside price objective for the bears is closing prices below solid technical support at 350.00 cents. First resistance is seen at this week’s high of 367.45 cents and then at 370.00 cents. First support is seen at today’s low of 358.35 cents and then at the October low of 354.90 cents. Wyckoff's Market Rating: 2.0.
By
Jim Wyckoff
For Kitco News
David