(Kitco News) - Gold prices are posting modest gains in midday U.S. trading Tuesday. Bullish technical charts are limiting selling pressure in the yellow metal. However, buyers in the precious metals are tentative, overall, as the U.S. dollar index has rallied this week, while crude oil prices are slumping badly. The marketplace is somewhat subdued ahead of a key U.S. inflation report out Wednesday morning. December gold was last up $8.80 at $2,541.50 and December silver was down $0.081 at $28.575.
The U.S. data point of the week is Wednesday’s consumer price index for August, which is seen coming in at up 2.6%, year-on-year, following the 2.9% rise seen in the July report. The “core” CPI (excluding food and energy) for August is seen up 3.2% annually, compared to a rise of 3.2% in the July report. The U.S. producer price index report is out Thursday.
U.S. stock indexes are lower at midday, following good gains Monday.
The marketplace will be closely watching Tuesday evening’s first debate between U.S. presidential candidates Harris and Trump.
The key outside markets today see the U.S. dollar index slightly higher. Nymex crude oil prices are sharply lower, hit a 15-month low and are trading around $68.00 a barrel. The benchmark 10-year U.S. Treasury note is presently fetching 3.663%.
Technically, December gold bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the record high of $2,570.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,475.00. First resistance is seen at $2,550.00 and then at $2,570.40. First support is seen at today’s low of $2,528.90 and then at this week’s low of $2,514.20. Wyckoff's Market Rating: 8.0.
December silver futures bulls and bears are on a level overall near-term technical playing field. Silver bulls' next upside price objective is closing prices above solid technical resistance at $30.00. The next downside price objective for the bears is closing prices below solid support at the August low of $26.885. First resistance is seen at $29.00 and then at $29.55. Next support is seen at $28.00 and then at $27.50. Wyckoff's Market Rating: 5.0
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