Gold Gets Modest Lift From PPI Miss

(Kitco News) - Gold pricesare modestly higher in early U.S. dealings Thursday. The yellow metal got aslight boost following a U.S. producer price index (PPI) report that came inlower than market expectations. December gold futures were last up $2.90 anounce at $1,223.80. September Comex silver was last up $0.068 at $15.495 anounce.

U.S.producer prices in July were unchanged, versus pre-report expectations for arise of 0.2% from June. This report is the most significant U.S. economicreport so far this week. The consumer price index is due out Friday morning.

Globalstock markets were mixed overnight. U.S. stock indexes are pointed toward firmeropenings when the New York day session begins.

TheRussian ruble hit a two-year low against the U.S. dollar overnight as the U.S.hit Russia with new economic sanctions. The Turkish lira fell to another recordlow against the greenback. The British pound is under pressure on Brexituncertainties.

Thekey “outside markets” today find the U.S. dollar index slightly up and crudeoil prices near steady and trading around $67.00 a barrel.

OtherU.S. economic data due for release Thursday includes the weekly jobless claimsreport, monthly chain store sales and monthly wholesale trade.

Technically,gold bears have the solid overall near-term technical advantage amid a pricedowntrend on the daily bar chart. Gold bulls' next upside near-term pricebreakout objective is to produce a close in December futures above solidresistance at $1,244.70. Bears' next near-term downside price breakoutobjective is pushing prices below solid technical support at $1,200.00. Firstresistance is seen at this week’s high of $1,226.00 and then at $1,230.00.First support is seen at last week’s low of $1,212.50 and then at $1,200.00.Wyckoff's Market Rating: 1.5

Septembersilver futures bears have the solid overall near-term technical advantage.Silver bulls' next upside price breakout objective is closing prices abovesolid technical resistance at $15.75 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at $15.00. Firstresistance is seen at last week’s high of $15.635 and then at $15.75. Nextsupport is seen at last week’s low of $15.25 and then at the July low of $15.185.Wyckoff's Market Rating: 1.5.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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