(Kitco News) - Gold and silver prices are posting mild gains in early U.S. trading Tuesday. Bullish gold charts are limiting selling pressure in the yellow metal. However, gains in both metals are being squelched by the firmer U.S. dollar index early this week. The marketplace is subdued ahead of a key U.S. inflation report out Wednesday morning. December gold was last up $2.60 at $2,535.60 and December silver was up $0.119 at $28.77.
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.
Asian and European stock indexes were mostly higher overnight. U.S. stock indexes are pointed to slightly lower openings when the New York day session begins, following good gains Monday.
In overnight news, there was some mixed economic data from China, as its trade balance in August came in above expectations. Said David Morrison from Trade Nation in an email dispatch today: China’s exports grew at their fastest rate in 17 months, (up 8.7%, year-on-year) “no doubt as manufacturers rush to deliver ahead of the implementation of tariffs. But imports (at up 0.5% YOY) indicate that domestic demand remains elusive, providing further evidence of the difficulties the Chinese economy is having in moving away from its dependence on foreign buyers.”
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 lower and trading around $68.00 a barrel. Oil traders are watching a storm brewing in the Gulf of Mexico that could turn into a hurricane. The benchmark 10-year U.S. Treasury note is presently fetching 3.717%.
U.S. economic data due out Tuesday includes the weekly Johnson Redbook retail sales report and the NFIB small business index.
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 $2,540.00 and then at $2,550.00. First support is seen at this week’s low of $2,514.20 and then at the September low of $2,502.70. 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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