Gold trades near steady as bulls stabilize market

(Kitco News) - Gold prices are trading near steady in midday U.S. dealings Thursday. Importantly, gold bulls have stabilized the market following recent selling pressure that drove prices to a more-than-four-month low on Monday. Silver bulls still have some more work to do to steady their market. October gold futures were last down $0.70 at $1,750.60 and September Comex silver was last down $0.323 at $23.16 an ounce.

The U.S. got another inflation reading today, as the producer price index for July came in hotter than expected, at up 1.0% from June. The PPI was forecast at up 0.6% from June after rising by 1.0% in June from May. On an annual basis, PPI in July was up 7.8%. The metals and other markets did not react significantly to the hotter PPI. Recent U.S. and some global inflation readings have been running hotter than forecast, so today’s PPI number was probably not surprising to many.

 

Global stock markets were mixed overnight, with European indexes firmer and at or near record highs and Asian shares a bit weaker. The U.S. stock indexes are mixed at midday and are at or near their record highs. The summertime doldrums are presently the feature in the marketplace—not surprising for mid-August, when families are taking vacations just before school starts and as most of Europe is on holiday.