On Friday's early U.S. session, gold and silver prices rose, following another mild U.S. inflation report. December gold increased by $20.80, reaching $2,660.10, while December silver rose by $0.245, reaching $31.485.
The just-released September U.S. Producer Price Index (PPI) report remained unchanged from August, with an expected increase of 0.1% month-over-month. In comparison, the August report showed an increase of 0.2%. The core PPI for September (excluding food and energy) rose by 0.2%, in line with market expectations. CNBC economic reporter Steve Liesman stated, "I don't see any inflation in this report." The PPI data is favorable for bullion market bulls, indicating that the Federal Reserve is still expected to cut interest rates by 25 basis points this year.
Asian and European stock markets experienced mixed gains and losses overnight. At the opening of the New York session, U.S. stock indices opened with mixed sentiments. Chinese stock markets plummeted overnight. The Shanghai Composite Index fell by 6.6%; the CSI 300 Index dropped by over 7%. The Hang Seng Index in Hong Kong also declined by 1.7%. Earlier this week, the National Development and Reform Commission of China issued a lukewarm statement on economic stimulus, which disappointed the market. A Bloomberg survey shows that traders and investors are waiting for another update on Saturday, when China is expected to announce $283 billion in new stimulus measures. It is anticipated that most of the funds will come from government bonds.
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Today, the main external market considers the U.S. Dollar Index to be close to stable. Crude oil prices on the New York Mercantile Exchange are weakening, trading at around $75.25 per barrel. The benchmark 10-year U.S. Treasury bond yield is currently at 4.077%.
Other U.S. economic data released on Friday includes the University of Michigan Consumer Sentiment Survey.
Technically, December gold bulls have a solid overall technical advantage in the short term. The next upside price objective for the bulls is to form a closing price above the solid resistance level at the contract high of $2,708.70. The next near-term downside price objective for the bears is to push futures prices below the solid technical support level at $2,572.50. The first resistance level is at this week's high of $2,679.20, followed by $2,690.60. The first support level is today's low of $2,645.20, followed by this week's low of $2,618.80. Our market rating: 8.0.
December silver futures bulls have an overall technical advantage in the short term. On the daily bar chart, prices are still in an uptrend for two months, but the bulls need to show new strength soon to maintain momentum. The next upside price objective for bullish silver is a closing price breakthrough above the solid technical resistance level at the May high of $33.50. The next downside price objective for the bears is a closing price below the solid support level at $29.00. The first resistance level is at $32.00, followed by $32.50. The next support level is expected at the overnight low of $31.26, followed by $31.00. Our market rating: 6.5.
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