Gold and silver prices are seeing gains in early U.S. trading on Friday, buoyed by a recently released U.S. inflation report that came in softer than expected. December gold is currently up $20.80, trading at $2,660.10, while December silver has risen $0.245 to reach $31.485.
U.S. Producer Price Index Report
The latest U.S. producer price index (PPI) report for September revealed no change from August’s levels, which contrasts with an anticipated increase of 0.1% month-on-month. The core PPI, excluding food and energy, also aligned with market expectations, rising 0.2%. CNBC economics reporter Steve Liesman commented, “I don’t see any inflation in this report,” suggesting that the PPI figures are favorable for the bulls in the precious metals market. These results support the view that the Federal Reserve is likely to proceed with two quarter-point interest rate cuts this year.
Mixed Market Sentiment
Overnight, Asian and European stock indexes exhibited mixed performance, with U.S. stock indexes expected to open in a similar manner. Chinese markets experienced significant declines, with the Shanghai Composite dropping 6.6%, the CSI 300 falling over 7%, and Hong Kong’s Hang Seng Index closing 1.7% lower. The downturn was attributed to a disappointing statement on economic stimulus from China’s National Development and Reform Commission. Traders are awaiting further details on Saturday, as China is anticipated to announce $283 billion in new stimulus measures, primarily funded through government bonds, according to a Bloomberg survey.
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