(Kitco News) - Gold and silver prices are higher in early U.S. trading Monday. The gold market continues to see some technical buying amid a bullish chart posture. Silver is being supported by some short covering in the futures market and some perceived bargain buying after recent selling pressure. December gold was last up $9.00 at $2,482.40. September silver was up $0.407 at $27.995.
The U.S. data points of the week are the July producer price index on Tuesday and the consumer price index for July on Wednesday. PPI is seen up 0.2% from June and the CPI is also seen up 0.2%, month-on-month. The retail sales report on Thursday will also be closely scrutinized by the marketplace.
Asian and European stock indexes were mixed but mostly firmer overnight. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. The U.S. stock indexes have made solid rebounds from their August lows, but the bulls are not out of the woods yet.
The key outside markets today see the U.S. dollar index slightly up. Nymex crude oil prices are up and are trading around $77.75 a barrel. A DowJones Newswire headline today reads: “Oil edges higher as markets brace for Iran retaliation.” The benchmark 10-year U.S. Treasury note is presently fetching 3.963%.
U.S. economic data due out Monday is light and includes the monthly Treasury budget statement.
Technically, December 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 contract high of $2,537.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,350.00. First resistance is seen at $2,490.00 and then at $2,500.00. First support is seen at the overnight low of $2,462.70 and then at $2,450.00. Wyckoff's Market Rating: 7.5.
September silver futures bears have the overall near-term technical advantage. Prices are in a 2.5-month-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the August high of $39.355. The next downside price objective for the bears is closing prices below solid support at $26.00. First resistance is seen at $28.50 and then at $28.815. Next support is seen at the overnight low of $27.28 and then at $27.00. Wyckoff's Market Rating: 3.5
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