Gold and Silver Prices Dip After US Inflation Report
Gold and silver prices experienced a midday slump on Tuesday, losing their earlier gains following the release of the Consumer Price Index report for May. The report showed a rise of 4.0% year-on-year, the same as in April’s report and in line with market predictions. Futures traders with weak long positions were also selling. August gold was last recorded at $1,959.00, down $10.70, and July silver was down $0.20 at $23.85.
CPI Report and FOMC Meeting
Other internals of the CPI report fell in line with expectations and the bullish attitude of the marketplace towards the numbers was noticed. Wednesday morning’s producer price index report for May is expected to show a month-on-month decline of 0.1%. The real data point of the week is the FOMC meeting of the Federal Reserve, which began on Tuesday morning and will end on Wednesday afternoon. Market consensus is that the Fed will pause in its interest-rate-tightening cycle.
China’s Monetary Policy and Global Stock Markets
China’s central bank made attempts to boost the country’s economy growth rate, which is slowing by reducing a key lending rate. Global stock markets were mostly higher overnight while U.S. stock indexes were higher during midday.
Bulls have the overall near-term technical advantage in the gold futures market with a next upside price objective of $2,000.00. Bears are aiming to push prices below solid technical support at the May low of $1,949.60. Meanwhile, silver bulls have the overall near-term technical advantage with an upside price objective of $25.00.