Gold and Silver Edge Higher in Quiet Midweek Trading

Gold and silver prices are posting modest gains during early U.S. trading hours on Tuesday. With the markets entering the typically subdued mid-summer phase, trading activity remains relatively muted. August gold futures have climbed $9.40 to $3,346.10, while September silver is up $0.165 to $38.275.

Overnight, stock markets in Asia and Europe delivered mixed results. U.S. equity indexes are also expected to open mixed, reflecting the slower summer pace.

Key external market indicators show the U.S. dollar index slightly lower, while NYMEX crude oil is softer, trading near $66 per barrel. The yield on the benchmark 10-year U.S. Treasury note stands at 4.477%.

Traders will be eyeing several U.S. economic reports scheduled for release Wednesday, including the MBA mortgage applications survey, the Producer Price Index (PPI), industrial production and capacity utilization figures, the Fed’s Beige Book, and the DOE’s weekly energy inventory data.

Technical Outlook

• Gold (August Futures): Bulls maintain the short-term technical edge. Their next goal is to close above strong resistance at $3,400.00. On the downside, bears aim to push prices below solid support at the June low of $3,250.50. Immediate resistance lies at $3,375.00, followed by this week’s high of $3,389.30. Support levels are marked at this week’s low of $3,327.30 and then at $3,300.00.
  Wyckoff’s Market Rating: 7.0
  

• Silver (September Futures): Bulls also retain a firm near-term technical advantage, as prices trend upward on the daily chart. The next bullish target is a close above key resistance at $40.00. Bears are aiming for a break below strong support at $36.00. Initial resistance is at Tuesday’s high of $38.74, followed by $39.00. First support is at Tuesday’s low of $37.895, then $37.50.
  Wyckoff’s Market Rating: 7.5