(Kitco News) - Gold and silver prices are solidly higher in early U.S. trading Thursday, with gold hitting a six-week high and back above $2,400.00, in the wake of another tame U.S. inflation report that suggests the Federal Reserve will cut interest rates sooner rather than later. August gold was last up $28.00 at $2,408.10. September silver was up $0.626 at $31.665.
]The just-released and highly anticipated June U.S. consumer price index saw a rise of 3.0%, year-on-year. June CPI was seen coming in at up 3.1% and compares to the May report reading of up 3.3%. The “core” CPI (excluding food and energy) was up 3.3%, annually and compares to forecasts for up 3.4% and compares to up 3.4% seen in the May report. The U.S. producer price index report for June is out on Friday morning.
A few analysts are even thinking the Fed could cut U.S. interest rates at
its next FOMC meeting on July 30-31.
Asian and European stock indexes were mostly firmer overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins and at new record highs for the S&P 500 and Nasdaq indexes.
The key outside markets today see the U.S. dollar index weaker. Nymex crude oil prices are a bit higher and trading around $82.50 a barrel. The benchmark 10-year U.S. Treasury note yield is presently 4.191% and down in the wake of the tamer CPI report.
Other U.S. economic reports out Thursday include the weekly jobless claims report, real earnings, the monthly budget statement and the monthly retail chain stores sales index.
Technically, August gold bulls have the firm overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the May contract high of $2,477.00. 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 $2,425.00 and then at $2,450.00. First support is seen at the overnight low of $2,376.80 and then at this week’s low of $2,356.00. Wyckoff's Market Rating: 7.0.
September silver futures bulls have the firm overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the May high of $33.05. 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 the July high of $31.79 and then at $32.00. Next support is seen at $31.00 and then at this week’s low of $30.71. Wyckoff's Market Rating: 7.0.
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