(Kitco News) - Gold prices are sharply higher up and silver prices solidly up in early U.S. trading Tuesday. The two precious metals are being boosted on this day by a depreciating U.S. dollar index that hit a 3.5-year low overnight, and by falling U.S. Treasury yields—both of which give the Federal Reserve more leeway if they are thinking about cutting U.S. interest rates. August gold was last up $54.90 at $3,362.70. September silver prices were last up $0.513 at $36.685.
Asian and European stocks were mixed overnight. U.S. stock indexes are pointed to weaker openings today in New York, on profit taking after the Nasdaq and S&P 500 indexes hit record highs Monday.
In overnight news, the Euro zone June consumer price index came in at up 2.0%, year-on-year, right in line with market expectations and compares to a 1.9% rise in May.
Traders are starting to look ahead to what is arguably the most important U.S. data point of the month—the June employment situation report from the Labor Department on Thursday (out one day early due to the Fourth of July holiday Friday). The key non-farm payrolls number is seen coming in at up 110,000 versus a rise of 139,000 in the May report.
The key outside markets today see the U.S. dollar index weaker and hit another 3.5-year low overnight. Nymex crude oil futures prices are firmer and trading around $65.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.19%.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook retail sales report, the U.S. manufacturing purchasing managers index (PMI), the ISM report on business manufacturing, the RCM/TIPP economic optimism index, construction spending, the global manufacturing PMI, and domestic auto industry sales.
Technically, August gold futures bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,400.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,200.00. First resistance is seen at $3,375.00 and then at $3,400.00. First support is seen at $3,350.00 and then at the overnight low of $3,313.70. Wyckoff's Market Rating: 6.5
September silver futures bulls have the overall near-term technical advantage but trading has turned choppy and sideways at higher levels recently. Silver bulls' next upside price objective is closing prices above solid technical resistance at the June high of $37.73. The next
downside price objective for the bears is closing prices below solid support at $35.00. First resistance is seen at $37.00 and then at $37.50. Next support is seen at $36.00 and then at last week’s low of $35.535. Wyckoff's Market Rating: 7.0
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