Overview
Gold prices are slightly lower and silver is near steady in early U.S. trading Monday, in quieter summertime trading. However, it’s an active week for U.S. economic reports, including key U.S. inflation data. Asian and European stock markets were mixed to weaker in overnight trading. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins.
China’s Economic Data
In overnight news, China’s consumer price index for June came in at 0.0%, year-on-year, which was below market expectations for a 0.2% rise. Meantime, China’s producer price index in June fell a lower-than-expected 5.4% year-on-year, compared to a 4.6% drop in May.
U.S. Economic Data
The U.S. data point of a busy data week is the consumer price index report for June on Wednesday, which is expected to come in at up 5.0%, year-on-year, compared to a gain of 5.3% in the May report. U.S. economic data due for release Monday includes the employment trends index, monthly wholesale trade, and consumer credit. Several Federal Reserve Board officials are also scheduled to give speeches today.
Technical Analysis
Technically, the gold futures bears have the overall near-term technical advantage. A nine-week-old price downtrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at $2,000.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at the overnight high of $1,933.70 and then at last week’s high of $1,942.90. First support is seen at Friday’s low of $1,915.40 and then at last week’s low of $1,908.50. Wyckoff’s Market Rating: 4.0.
The silver bears have the overall near-term technical advantage. Prices are in a nine-week-old downtrend on the daily bar chart. Silver bulls’ next upside price objective is closing September futures 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 last week’s high of $23.535 and then at $23.75. Next support is seen at $23.00 and then at last week’s low of $22.72. Wyckoff’s Market Rating: 4.0.
