Gold price holding solid gains after another tame U.S. inflation report

(Kitco News, Fri. Oct. 11th, 2024) – Gold and silver prices are higher in early U.S. trading Friday, in the immediate aftermath of another U.S. inflation report that came in tame. December gold was last up $20.80 at $2,660.10 and December silver was up $0.245 at $31.485.

The just-released U.S. producer price index report for September came in unchanged from August and was seen coming in up 0.1 percent, month-on-month. That compares to up 0.2% in the August report. The September core PPI (minus food and energy) came in at up 0.2%, which is right in line with market expectations. “I don’t see any inflation in this report,” said CNBC economics reporter Steve Liesman. The PPI numbers leaned friendly for the precious metals market bulls and suggest the Federal Reserve remains on track for two quarter-point interest rate cuts this year.

Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed to mixed openings when the New York day session begins. China’s stock markets slumped overnight. The Shanghai Composite lost 6.6%; the CSI 300 fell over 7%. Hong Kong’s Hang Seng also closed lower by 1.7%. China’s National Development and Reform Commission earlier this week sorely disappointed the marketplace with a tepid statement on economic stimulus. Traders and investors await another update on Saturday, when China is expected to announce $283 billion of new stimulus measures, according to a Bloomberg survey. The majority of the funding expected to come from government bonds.

The key outside markets today see the U.S. dollar index near steady. Nymex crude oil prices are weaker and are trading around $75.25 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 4.077%.

Other U.S. economic data due for release Friday includes the University of Michigan consumer sentiment survey.

Technically, December gold bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $2,708.70. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,572.50. First resistance is seen at this week’s high of $2,679.20 and then at $2,690.60. First support is seen at today’s low of $2,645.20 and then at this week’s low of $2,618.80.

December silver futures bulls have the overall near-term technical advantage. Prices are still in a two-month-old uptrend on the daily bar chart but bulls need to show fresh power soon to keep it alive. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the May high of $33.50. The next downside price objective for the bears is closing prices below solid support at $29.00. First resistance is seen at $32.00 and then at $32.50. Next support is seen at the overnight low of $31.26 and then at $31.00.

Posted by :

Jack Dempsey, President

401 Goldj Consultants LLC

jdemp2003@gmail.com