Gold prices softened in midday U.S. trading on Wednesday, facing slight pressure from bearish outside-market influences. In contrast, silver prices saw a modest uptick. Traders in the precious metals market are in a wait-and-see mode as they anticipate crucial U.S. economic data, including the Federal Open Market Committee (FOMC) minutes scheduled for release this afternoon and inflation reports later in the week. As of now, December gold was down $3.90, trading at $2,631.50, while December silver rose by $0.14 to reach $30.74.
Outside Market Influences
Key outside market factors include a stronger U.S. dollar index, which has hit a seven-week high. Meanwhile, Nymex crude oil prices are weaker, currently hovering around $73.25 per barrel. The yield on the benchmark 10-year U.S. Treasury note is around 4.015%.
Traders are closely monitoring upcoming U.S. inflation data, specifically the Consumer Price Index (CPI) scheduled for Thursday and the Producer Price Index (PPI) set for Friday. The September CPI is expected to show an annual increase of 2.3%, a slight decline from the 2.5% rise reported in August. The PPI for September is anticipated to rise by 0.1% month-on-month, down from a 0.2% increase in the previous month.
U.S. stock indexes are higher as midday trading continues.
Market Reactions to China’s Economic Briefing
The recent economic briefing from China’s National Development and Reform Commission has left local markets underwhelmed, as it provided little in terms of new stimulus measures. The Shanghai Composite fell by 6.6% on Wednesday, while the CSI 300 dropped over 7%. Hong Kong’s Hang Seng Index also ended the day down 1.7%, following a 9% loss the previous day. David Morrison from Trade Nation commented on the situation, stating, “There was astonishment and widespread disappointment at the paucity of the measures announced. These fell well short of expectations and risk undoing the positive reaction to the initial news that stimulus was on its way,” which has further contributed to bearish sentiment in precious metals.
