Gold, Silver Bulls Working To Stabilize Prices

(Kitco News) - Gold and silver prices are steady to slightly higher in quieter early-afternoon U.S.trading Thursday. Both metals are seeing some stabilization this week afterrecently notching 12-month lows. December gold futures were last down $0.10 anounce at $1,220.90. September Comex silver was last up $0.038 at $15.47 anounce.

Goldgot a slight boost following this morning’s U.S. producer price index (PPI)report that came in lower than market expectations. U.S. producer prices inJuly were unchanged, versus pre-report expectations for a rise of 0.2% fromJune. This report was the most significant U.S. economic report so far thisweek. However, the more closely watched consumer price index is due out Fridaymorning. CPI for July is forecast to come in at up 0.2% from June.

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. Currency markets are not in such as state as to prompt anysafe-haven demand for gold and silver, but traders are monitoring FOREX tradingconditions closely.

Thekey “outside markets” today find the U.S. dollar index higher and trading nearits recent 12-month high. Nymex crude oil prices are near steady and tradingaround $67.00 a barrel.

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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