Gold prices held steady during midday trading in the U.S. on Wednesday, following a brief decline prompted by a mild U.S. inflation report. The market saw profit-taking among short-term futures traders, while silver prices experienced an uptick. As of the latest update, December gold is trading $1.00 higher at $2,544.10, and December silver has risen by $0.316 to $28.935.
The highlight of this week’s economic data is Wednesday’s consumer price index (CPI) for August, which revealed a 2.5% annual increase. This figure came in slightly below the anticipated 2.6% rise and follows the 2.9% increase recorded in July. The core CPI, which excludes food and energy, also met expectations with a 3.2% annual gain, consistent with July’s report. The U.S. producer price index will be released on Thursday.
The post-CPI sell-off in gold may be attributed to a “buy the rumor, sell the fact” strategy, where traders who had anticipated a benign CPI report took profits following the actual release.
U.S. stock indices are trading lower today, partly influenced by perceptions that Vice President Kamala Harris outperformed former President Donald Trump in their debate on Tuesday night.
In other markets, the U.S. dollar index is slightly up, while Nymex crude oil prices have firmed after hitting a 16-month low on Tuesday, now trading around $67.00 per barrel. The yield on the benchmark 10-year U.S. Treasury note is decreasing, currently at 3.631%.
From a technical perspective, December gold bulls maintain a strong near-term advantage. Their immediate goal is to surpass resistance at the record high of $2,570.40. Conversely, bears aim to push prices below solid support at $2,475.00. Initial resistance is noted at $2,550.00 and then at the day’s high of $2,558.00, while support is seen at the week’s low of $2,514.20 and the September low of $2,502.70. Wyckoff’s Market Rating stands at 8.0.
For December silver futures, the market is currently balanced between bulls and bears. Bulls aim to close above solid resistance at $30.00, while bears seek to drive prices below the August low of $26.885. Immediate resistance levels are at the overnight high of $29.215 and $29.55, with support at Tuesday’s low of $28.36 and $28.00. Wyckoff’s Market Rating is 5.0.
