(Kitco News) - Gold prices are mildly higher in midday U.S. trading Tuesday, following a cool U.S. producer price inflation report. Silver prices are lower. Precious metals traders are now awaiting more key U.S. data on Wednesday and Thursday. December gold was last up $3.90 at $2,507.90. September silver was down $0.268 at $27.745.
The U.S. data points of the week started Tuesday morning with the July producer price index, which came in at up 0.1%. July PPI was seen coming up 0.2% from June. Excluding food and energy, the “core” PPI was unchanged from June versus expectations for a rise of 0.2%. These tame numbers fall into the camp of the U.S. monetary policy doves, who want to see the Federal Reserve cut U.S. interest rates sooner rather than later.
Wednesday morning’s more closely watched consumer price index for July is seen coming in up 0.2%, month-on-month. The retail sales report on Thursday will also be closely scrutinized by the marketplace.
The U.S. government has again warned that an Iranian and/or Iranian proxy group attack on Israel is likely imminent and could come as soon as this week. Also, the Ukrainian military has apparently established a foothold inside Russian territory. This is presently driving some mild safe-haven demand into the gold market. This matter is likely to escalate before it de-escalates.
The key outside markets today see the U.S. dollar index down. Nymex crude oil prices are down and are trading around $78.75 a barrel. Reads a DowJones Newswire headline today: “China’s oil-demand growth slowdown weighs on global outlook, IEA says.” The benchmark 10-year U.S. Treasury note is presently fetching around 3.8%.
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 the overnight high of $2,517.30 and then at $2,524.00. First support is seen at the overnight low of $2,498.20 and then at $2,475.00. 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 $29.355. The next downside price objective for the bears is closing prices below solid support at $26.00. First resistance is seen at the overnight high of $28.135 and then at $28.50. Next support is seen at Monday’s low of $27.28 and then at $27.00. Wyckoff's Market Rating: 4.0.
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