Make Kitco Your Homepage

Gold price weaker as U.S. CPI looms

Kitco News

(Kitco News) - Gold and silver prices are down a bit in subdued early U.S. trading Tuesday. A firmer U.S. dollar index so far today is a negative outside market element pressuring the metals markets. Metals traders are anxiously awaiting a U.S. inflation report on Wednesday. December gold was last down $6.90 at $1,940.30 and December silver was down $0.058 at $23.325.

If you have not done so, I encourage you to try out my new “Markets Front Burner” email report. I think it’s one of my best products yet (free!) in my 40-year quest to help you become a better trader and investor. It’s a weekly email report that highlights the latest developments in the marketplace, and how you can better manage those developments in your own trading/investing. Just try it for one week—I guarantee you will want to keep it coming. Sign up to my new, free weekly Markets Front Burner newsletter.

Traders and investors are waiting for the U.S. consumer price index report for August, due out Wednesday morning. The CPI is expected to be up 4.3%, year-on-year, versus a 4.7% rise in the July report. Look for more active trading in many markets in the immediate aftermath of the CPI report—especially if it’s a miss from market expectations.

Asian and European stock markets were mixed overnight. U.S. stock indexes are pointed to weaker openings when the New York day session begins. Equities traders are not quite half-way through what can be the tumultuous month of September, and the bulls are holding their own--so far. Six more weeks to go before the bulls can breathe easier, however, as October can also be a rocky month for the stock markets.

Gold price to hit $5,000 in 3 years, watch the default wave kick off a U.S. recession in Q4 - Michael Lee

The European Central Bank also holds its regular monetary policy meeting this week and is expected to slightly raise its main interest rate by 0.25 percent.

The key outside markets today see the U.S. dollar index higher. Nymex crude oil prices are higher and trading around $88.00 a barrel. The benchmark U.S. Treasury 10-year note yield is presently fetching 4.284%.

U.S. economic data due for release Tuesday includes the NFIB small business index and the weekly Johnson-Redbook retail sales report.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bears have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at the September high of $1,980.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the August low of $1,913.60. First resistance is seen at this week’s high of $1,954.60 and then at $1,965.00. First support is seen at the overnight low of $1,935.40 and then at $1,925.00. Wyckoff's Market Rating: 3.5

Live 24 hours silver chart [ Kitco Inc. ]

The silver bears have the overall near-term technical advantage. A bearish pennant pattern has formed on the daily bar chart. Silver bulls' next upside price objective is closing December futures prices above solid technical resistance at last week’s high of $24.655. The next downside price objective for the bears is closing prices below solid support at the August low of $22.585. First resistance is seen at this week’s high of $23.515 and then at $24.00. Next support is seen at the September low of $23.13 and then at $23.00. Wyckoff's Market Rating: 3.5.

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.