Gold Backs Down Amid Warmer U.S. CPI, Profit Taking

Gold prices are near steady in midday U.S. trading Thursday, and near daily lows. Some profit taking by the shorter-term futures traders is featured today, following this week’s good gains. A warmer but by no means hot U.S. inflation report also gave the gold market bulls a brief pause. August gold futures were last down $0.70 an ounce at 1,411.80. September Comex silver prices were last down $0.051 at $15.17 an ounce.

Gold prices backed well down from their session highs after the release of the U.S. consumer price index report that showed inflation was a bit higher than expected. June CPI was up 0.1% from May with the closely watched “core” inflation number up 0.3% from May. That data fell into the camp of the U.S. monetary policy hawks. Still, most traders agree the Federal Reserve will remain dovish, overall, and lower interest rates later this month. Fed Chairman Powell’s comments to a Senate panel on Thursday did little to change opinions of traders, following his fully dovish monetary policy comments to a House panel on Wednesday.

Gold prices are also saw some safe-haven demand Thursday. Reports said a British warship had to step in and rescue a U.K. oil tanker that was being harassed by several Iranian vessels in the Strait of Hormuz.

In overnight news, the Bank of England said the risk of a “no deal” on Brexit has hurt the U.K. economy. This matter could prompt some European buying of safe-haven gold if it becomes more problematic.

The key “outside markets” today see Nymex crude oil prices higher and trading a bit below $61.00 a barrel. The U.S. dollar index is slightly up at midday.

Technically, August gold futures prices closed nearer the session low today. The bulls still have the firm overall near-term technical advantage and are keeping a six-week-old uptrend in place on the daily bar chart. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,428.00. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at the July low of $1,384.70. First resistance is seen at $1,420 and then at today’s high of $1,429.40. First support is seen at $1,400.00 and then at Wednesday’s low of $1,391.80. Wyckoff’s Market Rating: 7.0.

September silver futures prices closed nearer the session low today. The silver bulls have the slight overall near-term technical advantage and are working on restarting the near-term price uptrend. But bulls need to show fresh power soon. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the June high of $15.625 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.70. First resistance is seen at today’s high of $15.345 and then at $15.51. Next support is seen at $15.00 and then at the July low of $14.915. Wyckoff’s Market Rating: 5.5.

September N.Y. copper closed down 45 points at 268.95 cents today. Prices closed near mid-range today. The copper bears have the overall near-term technical advantage. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the July high of 275.70 cents. The next downside price objective for the bears is closing prices below solid technical support at the June low of 259.95 cents. First resistance is seen at 270.00 cents and then at 272.50 cents. First support is seen at 265.00 cents and then at Wednesday’s low of 262.50 cents. Wyckoff’s Market Rating: 3.0.