Gold price awaits key US data, FOMC decision

In early US trading Monday, gold prices were slightly higher while silver prices were slightly lower. August gold was last up $1.90 at $1,979.10 and July silver was down $0.065 at $24.345. The marketplace is quieter just ahead of the FOMC monetary policy meeting and key CPI data and gold is trading at $1956.63 per ounce at the time of writing.

The FOMC meeting of the Federal Reserve is the central topic for the week, which begins Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chairman Powell. A majority of the marketplace still thinks the Fed will pause in its interest-rate-tightening cycle. However, a stronger US jobs report last Friday has bolstered those outliers who are thinking the Fed will make another rate hike this week.


Other important US economic reports out this week include the consumer and producer price index reports for May on Tuesday and Wednesday, respectively. The CPI is forecast up 4.0%, year-on-year, while the PPI is seen down 0.1%, month-on-month.

Asian stock markets were mixed overnight and European stock indexes were mostly firmer. US stock indexes are pointed toward slightly higher openings when the New York day session begins. It may be a quieter trading day Monday, just ahead of an important batch of economic data released this week.

The key outside markets today see the US dollar index lower. Nymex crude oil prices are solidly lower and trading around $68.25 a barrel. Meantime, the benchmark 10-year US Treasury note yield is presently fetching 3.743%.

US economic data due for release Monday is light and includes the monthly Treasury budget statement. Technically, the gold futures bulls have the overall near-term technical advantage. 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 the May low of $1,949.60. First resistance is seen at last week’s high of $1,987.80 and then at $2,000.00. First support is seen at the overnight low of $1,968.40 and then at the May low of $1,949.60. Wyckoff’s Market Rating: 6.5

The silver bulls have the overall near-term technical advantage. Silver bulls’ next upside price objective is closing July futures prices above solid technical resistance at $25.00.

The next downside price objective for the bears is closing prices below solid support at the May low of $22.785. First resistance is seen at last week’s high of $24.62 and then at $25.00. Next support is seen at the overnight low of $24.16 and then at $24.00. Wyckoff’s Market Rating: 6.0.