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(Kitco News) - Gold prices are modestly up and silver modestly down in early U.S. trading Tuesday. The precious metals are mostly treading water ahead of key central bank meetings taking place this week. June gold was last up $4.30 at $1,996.50 and July silver was down $0.22 at $25.01.
(By the way, I encourage you to check out my new daily item, "Kitco daily macro-economic/business digest." If you need to be up to speed quickly on the latest news that's impacting or has the potential to impact the general marketplace, this report can be your one-stop shopping. Check it out and let me know what you think.)
Global stock markets were mixed overnight. Some European markets and mainland China remained closed for a holiday. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. The U.S. stock index bulls are enjoying price uptrends on the daily bar charts and index prices are not far below this year's highs.
In overnight news, U.S. Treasury Secretary Janet Yellen has warned the U.S. government could be in default on some of its payments by June 1 if the debt limit is not increased. Reports said President Biden is calling congressional leaders to the White House to discuss the matter. This news may have put a slight bid into the safe-haven gold market.
Traders are anxiously awaiting the Federal Reserve's Open Market Committee (FOMC) meeting that begins Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chairman Jerome Powell. The FOMC is expected to raise its main U.S. interest rate (the Fed funds rate) by 0.25%. The European Central Bank also meets Thursday. The ECB is also expected to raise its main interest rate by a quarter-point. Also, on Friday comes the U.S. employment situation report from the Labor Department. Corporate earnings reports continue to flow out this week, including Apple's results.
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A Barrons story today says: "Markets seem convinced the Federal Reserve will deliver one more quarter-point hike Wednesday before a lengthy pause. But investors buying into that school of thought should heed a cautionary tale from Down Under. Australia's central bank shocked investors with a 25 basis-points hike Tuesday, also warning that more rises may be needed—sticky inflation was to blame." The Barrons story said the marketplace thought the Reserve Bank of Australia was done raising rates after it hiked by 25 basis points in April. Two better-than-expected U.S. manufacturing reports on Monday seem to corroborate the Barrons story that more than just one quarter-point U.S. rate hike is in the cards.
In other overnight news, the Euro zone April consumer price index came in at up 7.0%, year-on-year versus up 6.9% in March. The April reading was in line with market expectations.
The key outside markets today see the U.S. dollar index near steady. Nymex crude oil prices are lower and trading around $75.50 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.538%.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and chain store retail indexes, manufacturers' shipments and inventories, the job openings and labor turnover (JOLTS) survey, and domestic auto industry sales.
![Live 24 hours gold chart [Kitco Inc.]](/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, the gold futures bulls have the firm overall near-term technical advantage. Bulls' next upside price objective is to produce a close in June futures above solid resistance at the April high of $2,063.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the April low of $1,965.90. First resistance is seen at $2,000.00 and then at this week's high of $2,015.40. First support is seen at this week's low of $1,985.70 and then at last week's low of $1,980.90. Wyckoff's Market Rating: 7.0
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
The silver bulls have the firm overall near-term technical advantage. Silver bulls' next upside price objective is closing July futures prices above solid technical resistance at the April high of $26.435. The next downside price objective for the bears is closing prices below solid support at $23.50. First resistance is seen at the overnight high of $25.265 and then at $25.805. Next support is seen at the overnight low of $24.88 and then at last week's low of $24.735. Wyckoff's Market Rating: 7.0.
