(Kitco News) - Gold and silver prices are modestly lower in midday trading Thursday, but well up from two-month lows hit overnight. Bulls are trying to stabilize the two metals, but the markets remain in tailspins amid better investor/trader risk appetite, a surging U.S. dollar and recently rising U.S. bond yields. December gold was last down $10.60 at $2,576.10 and December silver was down $0.093 at $30.58.
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.”
U.S. stock indexes are lower at midday, on profit taking from recent gains.
The key outside markets today see the U.S. dollar index a bit higher again and hitting a six-month high overnight. 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 near steady and trading around $68.50 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 around 4.45%.
Technically, December gold bears have 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 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 today’s high of $30.635 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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