Gold price weakens despite tame U.S. CPI

NEW YORK (September 11) Gold prices are modestly lower in early U.S. trading Wednesday and have sold off a bit despite a tame reading on U.S. inflation. Profit taking from the shorter-term futures traders is featured. Silver prices are firmer. December gold was last down $8.40 at $2,534.70 and December silver was up $0.251 at $28.865.

The U.S. data point of the week is Wednesday’s consumer price index for August, which came in at up 2.5% annually, compared to forecasts for up 2.6%, year-on-year, and follows the 2.9% rise seen in the July report. The “core” CPI (excluding food and energy) for August was up 3.2% annually, right in line with forecasts, and compares to a rise of 3.2% in the July report. The U.S. producer price index report is out Thursday.

Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed to weaker openings when the New York day session begins. Some analysts are saying the weaker U.S. stock indexes and lower U.S. dollar index overnight, and some selling pressure in overseas stock markets are due in part to perceptions U.S. Vice President Kamala Harris beat former President Donald Trump in their debate Tuesday night.

The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are higher on short covering after hitting a 16-month low Tuesday, trading around $67.50 a barrel. The benchmark 10-year U.S. Treasury note yield is on the decline and is presently fetching 3.672%.

Other U.S. economic data due out Wednesday includes the weekly MBA mortgage applications survey, real earnings and the weekly DOE liquid energy stocks report.

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