Steady price action in gold, silver as U.S. inflation reports awaited
(Kitco News) - Gold and silver prices are near steady in early U.S. trading Tuesday, amid quiet, dog-days-of-summer trading as traders await some key inflation data out this week. October gold futures were last up $1.10 at $1,795.30. September Comex silver futures were last up $0.001 at $20.61 an ounce.
Traders are awaiting two key U.S. inflation reports that are on deck in the coming days. Wednesday comes the consumer price index report for July, which is seen coming in up 8.7%, year-on-year, after a rise of 9.1% in the June report. Thursday comes the producer price index report for July, seen up 0.2% from June and compares to the June report’s rise of 1.1% from May.
Global stock markets were steady to mixed overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session beings. Corporate earnings reports are in focus for stock traders this week. China-Taiwan tensions remain high as China is conducting military exercises near Taiwan, with Taiwan saying it will conduct its own military maneuvers.
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The key outside markets today see Nymex crude oil prices up and trading around $92.00 a barrel. The U.S. dollar index is a bit lower in early U.S. trading. The yield on the 10-year U.S. Treasury note is fetching 2.758%.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and chain store sales indexes, the NFIB small business index, preliminary productivity and costs, and the IDB/TIPP economic optimism index.
Technically, the October gold futures bears have the overall near-term technical advantage. However, a fledgling price uptrend is still in place on the daily bar chart to suggest a market bottom is in place. Bulls’ next upside price objective is to produce a close above solid resistance at $1,850.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the July low of $1,686.30. First resistance is seen at the August high of $1,801.00 and then at $1,825.00. First support is seen at Monday’s low of $1,776.20 and then at $1,769.80. Wyckoff's Market Rating: 3.5
September silver futures bears have the overall near-term technical advantage. However, bulls have gained momentum this week to suggest more upside in the near term. Silver bulls' next upside price objective is closing prices above solid technical resistance at $22.00. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at this week’s high of $20.745 and then at $21.00. Next support is seen at $20.25 and then at $20.00. Wyckoff's Market Rating: 3.5.