Gold price near steady as U.S. inflation report runs hot

Gold and silver prices are trading both sides of unchanged in early U.S. trading Wednesday, in the wake of another U.S. inflation report that is seen as problematic for consumers and the economy. Solidly higher crude oil prices at mid-week are working in favor of the metals market bulls. June gold futures were last down $1.50 at $1,839.50 and July Comex silver was last up $0.051 at $21.475 an ounce.

The U.S. data point of the week is just out and came in hot: the consumer price index report for April, which came in at up 8.3%, year-on-year. The number was expected to come in at up 8.1%. In March, the PPI rose 8.5% from a year earlier. Inflation remains a main concern for traders and investors, along with the ongoing Russia-Ukraine war and Covid lockdowns in China. Gold and silver prices did back down a bit from their moderate gains seen just before the CPI report was released. The data falls into the camp of the U.S. monetary policy hawks, who want to see a more aggressive pace of U.S. interest rate increases from the Federal Reserve.

Global stock markets were mostly higher overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins, and lost overnight gains on the hot U.S. inflation data. The S&P 500 and Nasdaq futures markets hit 12-month lows Tuesday and are in solid near-term price downtrends, suggesting the path of least resistance for the indexes will remain sideways to lower.  

The key outside markets today see Nymex crude oil futures prices solidly up and trading around $103.25 a barrel. Meantime, the U.S. dollar index is a bit firmer in early trading. The yield on the 10-year U.S. Treasury note is fetching 3.025%.

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