(Kitco News) - Gold prices are modestly up in early U.S. trading Tuesday, on a corrective bounce following Monday’s big downdraft. Silver prices are also posting mild gains. Improved risk appetite in the general marketplace early this week is a bearish anchor for the safe-haven metals. June gold was last up $22.20 at $3,250.10. July silver prices were last up $0.221 at $32.84.
The just-released 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.
Asian and European stock markets were mostly higher in overnight trading. U.S. stock indexes are pointed to slightly higher openings today in New York, on corrective pullbacks after solid gains on Monday. 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 $62.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.455%.
Other U.S. economic data due for release Tuesday includes the weekly Johnson Redbook retail sales report, real earnings, and the NFIB small business index.
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 the May low of $3,209.40 and then at $3,200.00. 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 $33.00 and then last week’s high of $33.48. Next support is seen at $32.50 and then at $32.00. Wyckoff's Market Rating: 5.5.
(Hey! My “Markets Front Burner” weekly email report is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. Plus, I’ll throw in an educational feature to move you up the ladder of trading/investing success. And it’s free! Sign up here; it’s real easy. https://www.kitco.com/services
