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Gold price firmer ahead of U.S. data, including FOMC

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(Kitco News) - Gold prices are slightly up in early morning U.S. trading Tuesday, as the market awaits a slew of important U.S. economic data due out today, and amid the start of the Fed’s monetary policy meeting. August gold futures were last up $2.30 at $1,866.90 and July Comex silver was last down $0.264 at $27.78 an ounce.

Global stock markets were mostly firmer overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins and at record highs in the S&P 500 and Nasdaq stock index futures. The past several weeks have seen little risk aversion in the marketplace and that’s been bullish for the global stock markets.   

Traders will be eyeing today’s U.S. retail sales report for May, expected to come in at down 0.6% from April. The May producer price index is another important data point out on a very busy report day today, and is expected to come in at up 0.5% from April.

Also, the Federal Reserve’s FOMC meeting begins Tuesday morning and ends Wednesday afternoon with a statement. While no major changes are expected for U.S. monetary policy, focus will be on the Fed’s tenor on inflation prospects and when the central bank will start to taper its very easy money policies. Fed officials recently have hinted they will begin discussing a timetable for reducing its bond-buying program (quantitative easing) sooner rather than later.

The key outside markets today see the U.S. dollar index firmer. Nymex crude oil prices are up and trading around $72.00 a barrel after hitting a 2.5-year high of $71.95 overnight. The key U.S. Treasury 10-year note yield is fetching 1.485%.

Other U.S. economic data due for release Tuesday includes the weekly chain store sales index and the Johnson Redbook retail sales report, the Empire State manufacturing survey, industrial production and capacity utilization, manufacturing and trade inventories, the NAHB housing market index, and Treasury international capital data.

Live 24 hours gold chart [Kitco Inc.]

Technically, August gold futures bulls have the overall near-term technical advantage but are fading. A nine-week-old price uptrend on the daily bar chart has been negated. Bulls’ next upside price objective is to produce a close above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,810.70. First resistance is seen at $1,875.00 and then at Monday’s high of $1,879.70. First support is seen at the overnight low of $1,860.10 and then at this week’s low of $1,845.70. Wyckoff's Market Rating: 6.5

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls have the overall near-term technical advantage but trading has turned sideways and choppy recently. Silver bulls' next upside price objective is closing July futures prices above solid technical resistance at the May high of $28.90 an ounce. The next downside price objective for the bears is closing prices below solid support at $27.00. First resistance is seen at the overnight high of $28.03 and then at Monday’s high of $28.16. Next support is seen at Monday’s low of $27.565 and then at last week’s low of $27.475. Wyckoff's Market Rating: 6.5.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.