Price gains for gold, silver as bargain buyers step in

 Gold and silver prices are moderately higher in early U.S. trading Thursday, on some perceived value-buying following this week’s selling pressure. Short-covering by the shorter-term futures trades is also likely featured today. A weaker U.S. dollar index on this day is also a friendly outside market force for the metals markets. October gold futures were last up $8.70 at $1,799.90. December Comex silver was last up $0.279 at $24.335 an ounce.

The just-released results of the regular monetary policy meeting of the European Central Bank saw no changes in ECB interest rate policy, as expected, but the central bank did slightly reduce its monthly bond purchases at a “moderately lower pace.”

Global stock markets were mostly down in overnight trading. The U.S. stock indexes are pointed to mixed openings when the New York day session begins. Trader and investor risk appetite is less robust this week. The resurgence of the delta variant of Covid in major economies has the marketplace more pensive.

In overnight news, China reported its August consumer price index up 0.8%, year-on-year, which was below expectations for a rise of 1.0%.

In a Wall Street Journal interview, Federal Reserve Bank of Atlanta President Raphael Bostic said recent weaker U.S. economic data has likely pushed back the start of the Fed’s tapering of its bond-buying program (quantitative easing), but added he still expects a U.S. interest rate hike in late 2022.

The key outside markets today see the U.S. dollar index weaker. Nymex crude oil futures prices are slightly higher and trading around $69.50 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.327%.  

U.S. economic data due for release Thursday includes the weekly jobless claims report and the weekly DOE liquid energy stocks report. Several Federal Reserve officials will participate in an economic forum today.

Technically, October gold futures bulls still have the slight overall near-term technical advantage but have faded and need to show more power soon to keep their edge. Prices are still in a four-week-old uptrend on the daily bar chart, but now just barely. Bulls’ next upside price objective is to produce a close above solid resistance at the July high of $1,836.20. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,775.00. First resistance is seen at $1,810.00 and then at $1,823.60. First support is seen at the overnight low of $1,786.20 and then at this week’s low of $1,780.80. Wyckoff’s Market Rating: 5.5

The silver bulls and bears are on a level overall near-term technical playing field. Bulls are still working on a four-week-old price uptrend on the daily chart. Silver bulls’ next upside price objective is closing December futures prices above solid technical resistance at $26.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at Wednesday’s high of $24.48 and then at the September high of $24.945. Next support is seen at the overnight low of $23.865 and then at $23.775.