– Gold and silver prices are trading near steady in early U.S. trading Thursday, pausing after solid gains Wednesday and ahead of some key U.S. economic data due out this morning, highlighted by a speech from Federal Reserve Chairman Jerome Powell. October gold futures were last down $0.80 an ounce at $1,943.10. September Comex silver prices were last down $0.024 at $27.425 an ounce.

Global stock markets were mixed overnight. The U.S. stock indexes are pointed toward modestly weaker openings when the New York day session begins. After the S&P 500 and Nasdaq stock indexes hit record highs this week, U.S. traders and investors are now a bit more risk averse late this week, as racial tensions in America are on the rise again. Several professional sports teams opted not to play their games Wednesday, following police shooting an African American man in Wisconsin. Also, Hurricane Laura is set to inflict catastrophic damage on the Louisiana and eastern Texas coast Thursday, including a storm surge of sea water weather officials are calling “un-survivable.”

Focus of the marketplace today will also be on Federal Reserve Chairman Jerome Powell’s speech on the U.S. economy, as part of the annual Jackson Hole meeting that is this year virtual. The speech is scheduled to start at 9:10 a.m. eastern time. Many expect inflation to be a main topic of Powell’s speech. Said one analyst in a dispatch this morning: “So far, we have only seen rising prices in asset classes such as stocks in particular, but throughout the past decade, the consumer price index has averaged around 1.5%, so missing the Fed’s 2% inflation target. ‘Average inflation targeting’ is the new formula expected to be endorsed by Powell today. It’s a policy framework that allows inflation to run above or below the 2% target, but given that inflation has been running below target for several years, the objective would be to allow price rises to overshoot for more extended periods before tightening policy. However, the idea of allowing inflation to run above target for extended periods is hard to sell to politicians, so it will be interesting to see how Powell is likely to package the new policy framework.”

Rallying prices in many raw commodity markets just recently appear to be sensing that inflation, and maybe even problematic inflation, could be in store in the coming months, following the massive infusion of central bank liquidity into the global financial system in recent months, to stimulate economies crippled by Covid-19 lockdowns.

The important outside markets today see Nymex crude oil prices slightly down and trading around $43.30 a barrel. Hurricane Laura is lashing Texas and Louisiana and has shut in much of the U.S. Gulf coast oil and gas installations. That pushed gasoline futures prices to a five-month high this week. The U.S. dollar index is a bit weaker and not far above its recent two-year low. The yield on the U.S. Treasury 10-year note is trading around 0.68% today.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the revised estimate of second-quarter gross domestic product, pending home sales and the Kansas City Fed manufacturing survey.

Technically, the gold bulls still have the firm overall near-term technical advantage, amid a so-far normal downside price correction in a market that is still bullish. Prices are still in an uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at $2,000.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at this week’s high of $1,961.90 and then at $1,975.00. First support is seen at $1,925.00 and then at this week’s low of $1,901.40. Wyckoff’s Market Rating: 7.0

September silver futures bulls have the solid overall near-term technical advantage. A bullish symmetrical triangle pattern has formed on the daily bar chart. Prices are still in an overall price uptrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the August high of $29.915 an ounce. The next downside price objective for the bears is closing prices below solid support at the August low of $23.58. First resistance is seen at this week’s high of $27.665 and then at $28.00. Next support is seen at $27.00 and then at $26.500. Wyckoff’s Market Rating: 7.5