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Gold and silver prices are modestly up in quieter midday U.S. trading Monday. A solidly lower U.S. dollar index is a supportive outside market element for the metals on this day. Short covering in the gold and silver futures markets is also featured ahead of a key U.S. inflation report on Wednesday. December gold was last up $5.10 at $1,947.80 and December silver was up $0.206 at $23.38.
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Traders and investors are waiting for the next major U.S. data point, which is the consumer price index report for August out Wednesday morning. The CPI is expected to be up 4.3%, year-on-year, versus a 4.7% rise in the July report.
The European Central Bank also holds its regular monetary policy meeting this week and is expected to slightly raise its main interest rate by 0.25 percent.
Asian and European stock markets were mixed overnight. U.S. stock indexes are up just a bit at midday, as equities traders are also awaiting the CPI report Wednesday.
In overnight news, a Wall Street Journal headline reads, “An important shift in Fed officials’ stance is under way.” In the article, reporter Nick Timiraos, who is said to have close ties with the Fed, writes that Fed officials, including Chairman Jay Powell, now have a more balanced approach on monetary policy. That’s a dovish shift from the more hawkish approach the Fed had in recent months, which was one of erring on the side of raising interest rates too high, to make certain inflation is choked off. Now, the Fed is more worried about further interest rate increases causing an unnecessary U.S. recession.
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Robust U.S. economic activity to support dollar, weigh on gold prices next week
The key outside markets today see the U.S. dollar index solidly lower. Nymex crude oil prices are near steady trading around $87.50 a barrel. The benchmark U.S. Treasury 10-year note yield is presently fetching 4.294%.
There was no major U.S. economic data released Monday.
Technically, December gold futures bears have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the September high of $1,980.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the August low of $1,913.60. First resistance is seen at today’s high of $1,954.60 and then at $1,965.00. First support is seen at $1,939.00 and then at $1,925.00. Wyckoff's Market Rating: 3.5?
December silver futures bears have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at last week’s high of $24.655. The next downside price objective for the bears is closing prices below solid support at the August low of $22.585. First resistance is seen at today’s high of $23.515 and then at $24.00. Next support is seen at the September low of $23.13 and then at $23.00 Wyckoff's Market Rating: 3.5.
December N.Y. copper closed up 900 points at 380.65 cents today. Prices closed near the session high. The copper bears have the slight overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 390.85 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 367.00 cents. First resistance is seen at 385.00 cents and then at 388.00 cents. First support is seen at 375.00 cents and then at last week’s low of 371.15 cents. Wyckoff's Market Rating: 4.5.
By
Jim Wyckoff
For Kitco News
