(Kitco News) - Gold prices are posting mild gains but down from daily highs in midday U.S. trading Wednesday, following a key U.S. inflation report that did not raise any new red flags. Silver prices are modestly down. August gold was last up $8.30 at $3,352.10. July silver prices were last down $0.0342 at $36.30.
Today’s U.S. data point of the week, the consumer price index report for May, saw the CPI rise 2.4%, year-on-year, right in line with market expectations and compares to up 2.3% in the April report. The core CPI (minus food and energy) came in at up 2.8%, year-on-year, close to being in line with market expectations and was up 2.8% in the April report. The report does not suggest problematic price inflation down the road and falls into the camp of the U.S. monetary policy doves. The Wall Street Journal today reported the expected summertime price increases due to the trade tariff wars initiated in winter and spring months have yet to materialize.
U.S. stock indexes are mixed to weaker at midday in New York. Trader and investor spirits were somewhat lifted after news reports said the U.S. and China have agreed on a framework to restore trade relations following two days of negotiations in London.
The key outside markets today see the U.S. dollar index down. Nymex crude oil futures prices are up and trading around $66.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.43% and down a bit after the tame CPI report.
Technically, August gold futures bulls have the firm overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at last week’s high of $3,427.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,250.00. First resistance is seen at today’s high of $3,382.30 and then at $3,400.00. First support is seen at the overnight low of $3,335.40 and then at $3,325.00. Wyckoff's Market Rating: 7.0.
July silver futures bulls have the solid overall near-term technical advantage. Prices are trending higher on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $40.00. The next downside price objective for the bears is closing prices below solid support at $34.00. First resistance is seen at this week’s high of $37.03 and then at $37.50. Next support is seen at $36.00 and then at $35.80. Wyckoff's Market Rating: 8.0.
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