Gold gains on technical buying, weaker greenback

(Kitco News) - Gold prices are higher in midday U.S. trading Tuesday, with silver prices slightly up. The metals markets got a lift following a U.S. inflation report this morning that came in cooler than expected and in turn sparked a sell off in the U.S. dollar index. Gold prices had slipped to a three-week low overnight. October gold futures were last up $11.70 at $1,804.00. December Comex silver was last up $0.049 at $23.845 an ounce.

The U.S. consumer price index report for August came in a up 0.3% from July versus the forecast up 0.4% and after a rise of 0.5% in July. Year-on-year the CPI was up 5.3% compared to forecasts of up 5.4%. The report falls into the camp of the U.S. monetary policy doves who want the Federal Reserve to hold off on tightening monetary policy, and that's what put some downside price pressure on the U.S. dollar index and in turn supported metals.

Global stock markets were mixed in quieter overnight trading. The U.S. stock indexes are also mixed at midday.

The other key outside market today sees Nymex crude oil futures prices higher, hitting a five-week high, and trading around $70.70 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.285%. 

Technically, October gold futures prices also scored a bullish "outside day" up today. Bulls have the slight overall near-term technical advantage. However, a four-week-old price uptrend on the daily bar chart has stalled out. 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 $1,750.00. First resistance is seen at today's high of $1,808.40 and then at $1,823.60. First support is seen at today's low of $1,778.60 and then at $1,772.00. Wyckoff's Market Rating: 5.5

The silver bears have the overall near-term technical advantage. A four-week-old uptrend on the daily chart has been negated. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the August low of $22.35. First resistance is seen at $24.00 and then at $24.345. Next support is seen at this week's low of $23.36 and then at $23.00. Wyckoff's Market Rating: 4.0.

December N.Y. copper closed down 470 points at 431.95 cents today. Prices closed nearer the session low today. The copper bulls have the slight 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 458.60 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 396.65 cents. First resistance is seen at 440.00 cents and then at this week's high of 447.15 cents. First support is seen at today's low of 428.70 cents and then at 425.00 cents. Wyckoff's Market Rating: 5.5.