(Kitco News) - Gold prices are near steady in early U.S. trading Tuesday, in the immediate aftermath of a U.S. consumer price index report that was not deemed problematic for inflation. Silver prices are weaker on profit taking after hitting a nearly 14-year high Monday. August gold was last down $0.30 at $3,358.60. September silver prices were last down $0.202 at $38.53.
The U.S. data point of the week saw the consumer price index for June come in at up 2.7%, year-on-year, which was in line with market expectations and compares to up 2.4% in the May CPI report. The core CPI (excluding food and energy) was up 2.9% annually, also in line with expectations. Markets show no significant reactions to the data.
Asian and European stocks were mostly firmer overnight. U.S. stock indexes are pointed to higher openings today in New York.
In overnight news, China’s second-quarter GDP came in at up 5.2%, year-on-year, which was in line with market expectations.
President Trump has given Russia 50 days to stop its war with Ukraine or face stiff economic penalties.
The key outside markets today see the U.S. dollar index slightly down. A Bank of America fund managers survey saw the fund managers saying being short the U.S. dollar is the most crowded trade at present. Veteran traders know that when too many traders are on one side of the boat, that trade has probably already run its course.
Nymex crude oil futures prices are weaker and trading around $66.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.42%.
Other U.S. economic data due for release Tuesday includes the weekly Johnson Redbook retail sales report, the Empire State manufacturing survey and real earnings.
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 the June low of $3,250.50. First resistance is seen at this week’s high of $3,389.30 and then at $3,400.00. First support is seen at this week’s low of $3,348.50 and then at $3,325.00. Wyckoff's Market Rating: 7.0
September silver futures bulls have the solid overall near-term technical advantage. 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 $36.00. First resistance is seen at $39.00 and then at this week’s high of $39.57. Next support is seen at $38.00 and then at $37.73. Wyckoff's Market Rating: 8.0(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
