Gold firmer; key U.S. inflation report on deck
Gold is higher and silver is slightly lower in midday U.S. trading Tuesday. Gold is supported by bullish daily outside market forces that see the U.S. dollar index a bit weaker, crude oil prices higher and U.S. Treasury yields down a bit. Trading action was more subdued today ahead of a major U.S. inflation report out Wednesday morning. August gold was last up $7.20 at $1,938.10 and September silver was down $0.02 at $23.325.
Trading so far this week has been quieter ahead of the U.S. data point of the week: Wednesday morning’s consumer price index report for June, which is expected to come in at up 5.0%, year-on-year, compared to a gain of 5.3% in the May report. Trading action in many financial markets, as well as the precious metals, may heat up in the wake of the CPI report, especially if it’s a miss from market expectations.
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Gold prices can still push to record highs at $2,100 an ounce by the end of the year – MKS' Shiels
The key outside markets today see the U.S. dollar index slightly lower. Nymex crude oil prices are up and trading around $74.75 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.988%.
Technically, August gold futures were up $6.50 at $1,937.30 in afternoon trading and near mid-range. Bears have the overall near-term technical advantage. Prices are in a nine-week-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,975.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the February low of $1,846.80. First resistance is seen at today’s high of $1,944.50 and then at $1,950.00. First support is seen at today’s low of $1,929.80 and then at this week’s low of $1,918.00. Wyckoff's Market Rating: 4.0.
September silver futures were down $0.035 at $23.31 at midday and nearer the session low. Prices hit a three-week high early on today. The silver bears have the slight overall near-term technical advantage. However, a nine-week-old price downtrend on the daily bar chart has been negated. Silver bulls' next upside price objective is closing prices above solid technical resistance at the June high of $24.835. The next downside price objective for the bears is closing prices below solid support at the June low of $22.34. First resistance is seen at today’s high of $23.595 and then at $24.00. Next support is seen at $23.00 and then at last week’s low of $22.72. Wyckoff's Market Rating: 4.5.
September N.Y. copper closed down 230 points at 376.15 cents today. Prices closed nearer the session low. The copper bears have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the June high of 396.40 cents. The next downside price objective for the bears is closing prices below solid technical support at the May low of 356.50 cents. First resistance is seen at today’s high of 382.25 cents and then at 385.00 cents. First support is seen at last week’s low of 372.25 cents and then at 368.30 cents. Wyckoff's Market Rating: 3.0.
By
Jim Wyckoff
For Kitco News
Tim Moseley