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(Kitco News) – Gold and silver prices were broadly flat in early U.S. trading on Tuesday amid quiet summer days trading as traders awaited some key inflation data this week. October gold futures were last up $1.10 at $1,795.30. September Comex silver futures were last up $0.001 at $20.61 an ounce.
Traders are awaiting two key US inflation reports due in the coming days. On Wednesday, the consumer price index report for July is released, which is expected to rise 8.7% year-over-year after a 9.1% rise in the June report. On Thursday, the producer price index report for July was released, which rose 0.2% from June and compared with a rise in the June report of 1.1% from May.
Global stock markets were steady to mixed overnight. US stock indexes are headed for narrowly mixed opens when the session in New York. Corporate earnings reports are in focus for stock traders this week. Tensions between China and Taiwan remain high as China conducts military exercises near Taiwan, with Taiwan saying it will conduct its own military maneuvers.
In key foreign markets today, Nymex crude oil prices rose to trade around $92.00 a barrel. The U.S. dollar index was slightly lower in early U.S. trade. The yield on the 10-year US Treasury bond reached 2.758%.
US economic data due on Tuesday included the weekly Johnson Redbook and chain store sales indexes, the NFIB small business index, preliminary productivity and spending and the IDB/TIPP economic optimism index.
Technically, October gold futures bears have the overall short-term technical advantage. However, an emerging uptrend in prices is still present on the daily bar chart, suggesting that the market bottom is in place. The bulls’ next upside target is to create a close above solid resistance at $1,850.00. The Bears’ next short-term downside price objective is to push futures prices below solid technical support at the July low of $1,686.30. The first resistance is seen at the August high of $1,801.00 and then at $1,825.00. First support is seen at Monday’s low of $1776.20 and then at $1769.80. Wyckoff Market Rating: 3.5
Bears on September silver futures have the overall short-term technical advantage. However, the bulls have gathered momentum this week to suggest more upside in the near term. The next upside price target for silver bulls is prices closing above solid technical resistance at $22.00. The next downside price target for the bears is closing prices below solid support at $19.00. First resistance is seen at this week’s high of $20.745 and then at $21.00. The next support is seen at $20.25 and then $20.00. Wyckoff Market Rating: 3.5.
Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. This is not an invitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no liability for loss and/or damage arising from the use of this publication.
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