(Kitco News) - Gold prices are modestly down and silver prices slightly up in early U.S. trading Tuesday. Precious metals traders are awaiting price direction from this week’s key economic and political events that begin to unfold today.
August gold was last down $6.50 at $2,332.40. July silver was up $0.035 at
$29.335.
The U.S. data point of the day Tuesday is the Jobs and Labor Turnover Survey (JOLTS) report that the Federal Reserve watches very closely. The
FOMC minutes come on Wednesday afternoon and the monthly jobs report on
Friday. U.S. markets are closed on Thursday, July 4, for the Independence
Day holiday.
Fed Chairman Jerome Powell speaks at a European Central Bank
forum in Portugal, along with ECB President Lagarde, on Wednesday. The
U.K. has its general elections on Thursday.
Asian and European stock indexes were mixed but mostly firmer overnight.
U.S. stock indexes are pointed toward lower openings when the New York day
session begins.
In overnight news, the Eurozone June consumer price index came in up 2.5%
versus the May reading of up 2.6%, year-on-year. The June reading was
right in line with market expectations. The core CPI reading (excluding
food and energy) came in up 2.9% versus expectations of up 2.8%. The core
reading will complicate the ECB’s rate-cut policy, according to news
reports.
The key outside markets today see the U.S. dollar index slightly up. Nymex
crude oil prices are up, hit a nearly three-month high and are trading
around $84.00 a barrel. The benchmark 10-year U.S. Treasury note yield is
presently 4.44%. U.S. Treasury yields have been on the rise recently.
Other U.S. economic data due for release Tuesday includes the weekly
Johnson Redbook retail sales report, the RCM/TIPP economic optimism index,
and domestic auto industry sales.
Technically, August gold bulls have a slight overall near-term technical
advantage. However, prices are in a six-week-old downtrend on the daily
bar chart. 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 $2,300.00. First resistance is seen at $2,350.00 and then at
$2,360.00. First support is seen at $2,325.00 and then at $2,315.00.
Wyckoff's Market Rating: 5.5.
September silver futures bulls have a slight overall near-term technical advantage but have faded. Prices are in a six-week-old downtrend on the
daily bar chart. Silver bulls' next upside price objective is closing
prices above solid technical resistance at $31.225. The next downside
price objective for the bears is closing prices below solid support at the
June low of $28.90. First resistance is seen at $30.00 and then at $30.50.
Next support is seen at this week’s low of $29.25 and then at $29.00.
Wyckoff's Market Rating: 5.5.
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