Precious Metals Preview: Gold and silver futures seen supported in early Asia

Sharp decline in oil prices and recovery from deep losses yesterday is seen supporting gains in the precious metals on Thursday morning in Asia. Oil prices experienced a decline as the Trump administration considers easing sanctions on shadow fleet vessels. Meanwhile, hotter-than-expected US inflation reading increased Federal Reserve (Fed) rate hike bets for October, that led to a decline in the counters late yesterday. Data released by the US Bureau of Labor Statistics showed that the US Consumer Price Index (CPI) climbed 3.7% YoY in September, compared to 3.4% in August. This figure came in above the consensus of 3.6%. The core Consumer Price Index, excluding fluctuating food and energy costs, rose by 2.6% YoY in September, versus a 2.4% rise prior, stronger than the 2.5% expected. On a monthly basis, the CPI and core CPI increased by 0.6% and 0.3%, respectively. Currently, the yellow metal is quoting at $4170.90 per ounce while silver is up half a percent at $56.20 an ounce.

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