However, gold miners were gaining Wednesday morning Good U.S. December industrial production and producer price inflation numbers buoyed silver and stocks Wednesday morning, but gold was slightly lower. Spot gold was down nearly 0.2%, with a bid price of $1,648.40 per ounce and an ask price of $1,649.40. Spot gold traded as high as $1,656.60 and as low as $1,641.10. The London afternoon reference price fix came in at $1,647, $9 per ounce lower than Tuesday’s reference price, according to Kitco market data. Spot silver was up 1%, bid at $30.36 per ounce with an ask price of $30.46. The morning high as of time of writing was $30.52 and the low was $29.93. Friday’s reference price was set at $30.15 in the London a.m., 26 cents per ounce lower than yesterday’s price fix. U.S. industrial production rose 0.4% in December after falling 0.3% in November — the 10th consecutive and largest gain of 2011. For Q4, industrial production increased at an annual 3.1% rate. Manufacturing output rose 0.9% in December with “similarly sized gains for both durables and nondurables.� December’s capacity utilization rate came in at 78.1%, 2.3% below its long-run average. Total industrial production in December was 2.9% above its level a year ago, according to the Fed. The Bureau of Labor Statistics reported that December’s seasonally adjusted Producer Price Index for finished goods fell 0.1% after increasing 0.3% in November and falling 0.3% in October. the intermediate goods index fell 0.5%, and crude goods prices dropped 1.1% in the last month of 2011. Gold bullion prices rallied and reached $1,658 an ounce in London morning trading, though they remained below the five-week high of $1,667 hit yesterday, BullionVault reports in its London Gold Market report. “Gold is working on its third up week,� according to Scotia Mocatta technical analysts’ latest market commentary. “(Gold) faces critical resistance at $1,667 (which) was the mid-November low. Our view is that while $1,667 holds, (the) big picture risk remains bearish.�

Source