Gold, silver lower amid better risk appetite, rising bond yields

Gold and silver prices are moderately down in midday U.S. trading Thursday, on some pressure from an uptick in trader and investors risk appetite late this week following some U.S. inflation data that was a bit tamer than expected. Rising U.S. Treasury bond yields today are also a negative for the metals. October gold futures were last down $9.10 at $1,794.10. September Comex silver futures were last down $0.437 at $20.30 an ounce.

Today’s U.S. producer price index report for July came in down 0.5%, compared to forecasts of up 0.2% from June and compares to the June PPI report’s rise of 1.1% from May. Year-on-year the July PPI was up 9.8%, which is still hot. On Wednesday the U.S. consumer price index report for July that came in unchanged from June and up 8.5% year-on-year. This week’s U.S. inflation data is prompting some early speculation in the marketplace that inflationary pressures may have peaked and will trend down in the coming months. That has likely somewhat boosted U.S. consumer confidence and boosted the U.S. stock market. Global stock markets were mostly flat overnight. U.S. stock indexes are firmer at midday.

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The key outside markets today see Nymex crude oil prices solidly up and trading around $94.50 a barrel. The U.S. dollar index is weaker in midday U.S. trading. The yield on the 10-year U.S. Treasury note is fetching around 2.8%.

Technically, October gold futures bears have the overall near-term technical advantage. However, a fledgling price uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,850.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,750.00. First resistance is seen at today’s high of $1,804.30 and then at this week’s high of 1,814.40. First support is seen at today’s low of $1,788.50 and then at this week’s low of $1,776.20. Wyckoff's Market Rating: 4.0.

September silver futures bears have the overall near-term technical advantage. However, prices are in a fledgling uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $22.00. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at this week’s high of $20.83 and then at $21.00. Next support is seen at today’s low of $20.19 and then at $20.00. Wyckoff's Market Rating: 4.0.

September N.Y. copper closed up 515 points at 370.10 cents today. Prices closed near the session high and hit a five-week high today. The copper bulls and bears are on a level overall near-term technical playing field. Prices are trending up on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 400.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 340.00 cents. First resistance is seen at 375.00 cents and then at 380.00 cents. First support is seen at 360.00 cents and then at this week’s low of 353.15 cents. Wyckoff's Market Rating: 5.0.

By Jim Wyckoff

For Kitco News

Time to buy Gold and Silver on the dips