(Kitco News) - Gold prices are solidly up in midday U.S. trading Tuesday and have extended modest earlier corrective gains following Monday’s big downdraft. Silver prices are also good gains. A lower U.S. dollar index and solidly higher crude oil prices on this day are friendly outside-market elements for the two precious metals. June gold was last up $31.40 at $3,259.20. July silver prices were last up $0.521 at $33.145.
The U.S. data point of the day saw the consumer price index report for April come in at up 2.3%, year-on-year, slightly down from up 2.4% in the March report. The core CPI (excluding food and energy) came in at up 2.8%, year-on-year, also unchanged from the March report and in line with market expectations. The marketplace showed no major reactions to the data but the U.S. stock indexes did up-tick slightly. The report does lean slightly friendly for the precious metals markets because it’s not a problematic inflation report that would give the Federal Reserve pause on cutting interest rates.
U.S. stock indexes are mostly higher at midday. Risk appetite has improved early this week on signs of a thawing in the U.S. China cold war on trade.
The key outside markets today see the U.S. dollar index weaker after strong gains Monday. Nymex crude oil futures prices are higher and trading around $63.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.45%.
Technically, June gold futures bulls and bears are on a level overall near-term technical playing field. Bulls’ next upside price objective is to produce a close above solid resistance at $3,350.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,200.00. First resistance is seen at the overnight high of $3,270.40 and then at $3,300.00. First support is seen at $3,250.00 and then at the May low of $3,209.40. Wyckoff's Market Rating: 5.0.
July silver futures bulls have the slight overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $34.015. The next downside price objective for the bears is closing prices below solid support at $31.00. First resistance is seen at last week’s high of $33.48 and then at $34.00. Next support is seen at $32.50 and then at $32.00. Wyckoff's Market Rating: 5.5.
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