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(Kitco News) – Gold and silver prices edged lower in early U.S. trading on Thursday, following another U.S. inflation report that was not released. not as hot as expected by the market. This boosted risk appetite among traders and investors late in the week, which is negative for safe-haven metals. October gold futures were last down $2.60 at $1,800.70. September Comex silver futures were last down $0.232 at $20.50 an ounce.
The just-released U.S. Producer Price Index report for July is down 0.5%, compared to forecasts for a 0.2% rise from June and a 1% rise. .1% of the June PPI report compared to May. Year-over-year, the July PPI rose 9.8%, which is still hot.
Global stock markets were mostly flat overnight. US stock indices are trending towards firmer openings when the day’s session in New York begins. Risk appetite is a little brighter at the end of the week after Wednesday’s slightly softer US consumer price index report, unchanged from June and up 8.5% year-on-year . This figure is also high, but not as high as expected and, given the current PPI decline, is prompting early speculation in the market that inflationary pressures may peak and subside in the coming months.
Major outside markets are seeing Nymex crude oil prices firming today and trading around $93.00 a barrel. The US Dollar Index is weaker in early US trading. The yield on the 10-year US Treasury bond reached 2.754%.
Other US economic data due out Thursday includes the weekly jobless claims report.
Technically, October gold futures have the overall short-term technical advantage. However, an upward price trend is in place on the daily bar chart to suggest that a market bottom is in place. The Bulls’ next upside price objective is to produce a close above the strong resistance at $1,850.00. Bears next short-term downside price objective is to push futures prices below strong technical support at the July low of $1,686.30. First resistance is seen at this week’s high at $1,814.40 and then at $1,825.00. First support is seen at today’s low of $1,788.50 and then at this week’s low of $1,776.20. Wyckoff Market Rating: 4.0
September silver futures have the overall short-term technical advantage. However, the bulls have gained momentum this week to suggest more short-term upside. The next upside price objective for the silver bulls is to close prices above the strong technical resistance at $22.00. The next downside price objective for the bears is to close prices below the strong support at $19.00. First resistance is seen at this week’s high at $20.83 and then at $21.00. The next support is seen at $20.315 and then at $20.00. Wyckoff Market Rating: 3.5.
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