Gold prices rose, and silver prices saw a slight increase in midday U.S. trading on Tuesday. The boost for gold came after a weaker-than-expected U.S. economic report was released earlier in the morning. Additionally, a rally in the crude oil market to a six-week high provided a bullish outside-market influence on the metals markets. August gold was last up $13.30 at $2,342.30, while July silver was up $0.079 at $29.47.
Gold Gains on Economic Data
Today’s U.S. retail sales report for May showed a modest gain of 0.1% month-on-month, falling short of the anticipated 0.2% increase. Furthermore, April sales were revised down from unchanged to -0.2% month-on-month. This weaker sales data supports the view of U.S. monetary policy hawks advocating for the Federal Reserve to cut interest rates sooner rather than later. CNBC’s chief economics reporter, Steve Liesman, highlighted the significance of today’s retail sales report, noting that the data, including the April revisions, suggest a slowdown in U.S. economic growth.
Market Reaction
At midday, U.S. stock indexes were mixed. Despite the upcoming U.S. federal holiday on Wednesday, which will see U.S. markets closed, this week remains busy for U.S. economic data releases.
The U.S. dollar index was slightly down after the downbeat retail sales report, while Nymex crude oil prices were firmer, hitting a six-week high.
Technical Analysis
Gold (August)
Gold bulls and bears are on a level overall near-term technical playing field amid recent choppy trading. The next upside price objective for bulls is to close above solid resistance at the June high of $2,406.70. Bears aim to push futures prices below solid technical support at the June low of $2,304.20. Initial resistance is seen at $2,350.00, followed by $2,358.80. First support is identified at the overnight low of $2,320.20, then at the June low of $2,304.20. Wyckoff’s Market Rating for gold stands at 5.0.
Silver (July)
July silver futures bulls hold an overall near-term technical advantage. However, prices are trending down on the daily bar chart. Silver bulls’ next upside price objective is to close prices above solid technical resistance at $31.00. Bears’ next downside price objective is to close prices below solid support at $28.00. Initial resistance is seen at today’s high of $29.76, followed by $30.00. Next support is identified at $29.00 and then at the June low of $28.73. Wyckoff’s Market Rating for silver is 6.0.
In summary, the weaker U.S. retail sales data and higher crude oil prices have supported gold prices, while silver prices have also edged higher amidst mixed signals in broader markets.
