(Kitco News) - Gold prices are slightly up and silver slightly down in early U.S. trading Tuesday. Gold saw a modest boost after a downbeat U.S. economic report was released. August gold was last up $3.30 at $2,332.10. July silver was last down $0.191 at $29.195.
The just-released U.S. retail sales report for May showed a gain of 0.1%, month-on-month, versus expectations for a rise of 0.2%. April sales were revised down from unchanged to -0.2%, month-on-month. Today’s weaker sales data falls into the camp of the U.S. monetary policy hawks, who want to see the Federal Reserve cut interest rates sooner rather than later. CNBC’s chief economics reporter Steve Liesman called today retail sales report very important as the data, including the April revisions, suggests U.S. economic growth is slowing and not accelerating.
Asian and European stock indexes were mostly higher overnight. U.S. stock indexes are pointed toward mixed openings when the New York day session begins. Despite the U.S. federal holiday on Wednesday, when U.S. markets are closed, it’s still a busy week for U.S. data.
In overnight news, the Eurozone consumer price index for May was reported up 2.6%, year-on-year, which was right in line with market expectations.
Australia’s central bank left its monetary policy unchanged at its regular meeting Tuesday. The bank said inflation is easing slower than expected and remains too high.
The key outside markets today see the U.S. dollar index slightly up but did down-tick after the retail sales report. Nymex crude oil prices are near steady and trading around $80.25 a barrel after hitting a six-week high Monday. The benchmark 10-year U.S. Treasury note yield is presently 4.24% and has down-ticked following the retail sales report.
Other U.S. economic data due for release Tuesday includes the weekly Johnson Redbook retail sales report, industrial production and capacity utilization and manufacturing and trade inventories. A few Federal Reserve officials are also slated to speak today.
Technically, August gold bulls and bears are on a level overall near-term technical playing field amid recent choppy trading. Bulls’ next upside price objective is to produce a close above solid resistance at the June high of $2,406.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the June low of $2,304.20. First resistance is seen at the overnight high of $2,341.10 and then at $2,350.00. First support is seen at $2,315.00 and then at the June low of $2,304.20. Wyckoff's Market Rating: 5.0.
July silver futures bulls have the overall near-term technical advantage. However, prices are trending down on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $31.00. The next downside price objective for the bears is closing prices below solid support at $28.00. First resistance is seen at today’s high of $29.76 and then at $30.00. Next support is seen at $29.00 and then at this week’s low of $28.73. Wyckoff's Market Rating: 6.0.
(Hey! My “Markets Front Burner” weekly email report is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. Plus, I’ll throw in an educational feature to move you up the ladder of trading/investing success. And it’s free! Email me at jim@jimwyckoff.com and I’ll add your email address to my Front Burner list.)
