Gold Prices Slightly Up Ahead of Central Bank Meeting and U.S. Inflation Reports
In early U.S. trading Monday, gold prices are slightly higher while silver prices are slightly lower. A potential reason for this is the upcoming U.S. central bank monetary policy meeting, as well as key U.S. inflation reports that will be released soon. The FOMC meeting of the Federal Reserve starts on Tuesday morning and ends Wednesday afternoon, which will feature a statement and press conference from Fed Chairman Powell.
The majority of the marketplace thinks the Fed will pause in its interest-rate-tightening cycle. However, a stronger U.S. jobs report last Friday has bolstered those outliers who are thinking the Fed will make another rate hike this week. Other crucial U.S. economic reports for this week include the consumer and producer price index reports for May, which are forecasted to be up 4.0% and seen down 0.1% month-on-month, respectively, and will be released on Tuesday and Wednesday.
Asian stock markets were mixed overnight, while European stock indexes were mostly firmer. Meanwhile, Nymex crude oil prices are solidly lower and trading around $68.25 a barrel. The benchmark 10-year US Treasury note yield is presently fetching 3.743%. However, the U.S. dollar index is lower. Lastly, the monthly Treasury budget statement is the only U.S. economic data due for release Monday.
Gold Future and Silver Market Ratings
From a technical standpoint, gold futures currently have the overall near-term technical advantage and bulls’ next upside price goal is producing a close in August futures beyond solid resistance at $2,000. Meanwhile, silver bulls have the overall near-term technical advantage, and their next upside price goal is closing July futures prices above solid technical resistance at $25.00.