Gold sees mild profit-taking after tame U.S. CPI

(Kitco News, Wed. Sep. 11th, 2024) – Gold prices are near steady in midday U.S. trading Wednesday after selling off a bit right after the release of a tame U.S. inflation report. Profit taking from the shorter-term futures traders was featured. Silver prices are higher. December gold was last up $1.00 at $2,544.10 and December silver was up $0.316 at $28.935.

The U.S. data point of the week is Wednesday’s consumer price index for August, which came in at up 2.5% annually, compared to forecasts for up 2.6%, year-on-year, and follows the 2.9% rise seen in the July report. The “core” CPI (excluding food and energy) for August was up 3.2% annually, right in line with forecasts, and compares to a rise of 3.2% in the July report. The U.S. producer price index report is out Thursday.

It’s likely some of the selling pressure in gold after the CPI report was a “buy the rumor, sell the fact” scenario, whereby shorter-term futures traders expected a tame CPI report and established long positions beforehand, and then took profits after the tame CPI print.

U.S. stock indexes are solidly lower today. Some analysts are saying the weaker U.S. stock indexes are due in part to perceptions U.S. Vice President Kamala Harris beat former President Donald Trump in their debate Tuesday night.

The key outside markets today see the U.S. dollar index slightly up. Nymex crude oil prices are firmer on some short covering after hitting a 16-month low Tuesday, trading around $67.00 a barrel. The benchmark 10-year U.S. Treasury note yield is on the decline and is presently fetching 3.631%.

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 record high of $2,570.40. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,475.00. First resistance is seen at $2,550.00 and then at today’s high of $2,558.00. First support is seen at this week’s low of $2,514.20 and then at the September low of $2,502.70.

December silver futures bulls and bears are on a level overall near-term technical playing field. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $30.00. The next downside price objective for the bears is closing prices below solid support at the August low of $26.885. First resistance is seen at the overnight high of $29.215 and then at $29.55. Next support is seen at Tuesday’s low of $28.36 and then at $28.00.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com