Gold prices rise weak U.S. economic data increased noticeably, while silver prices also went up slightly in U.S. trading on Tuesday. This rise in gold was mainly due to weak U.S. economic data released earlier in the day. A significant rally in the crude oil rally market, which reached a six-week high, also helped boost the metals market. By midday, August gold was up by $13.30, reaching $2,342.30, and July silver increased by $0.079, hitting $29.47.
U.S. Retail Sales Report and Its Impact
The U.S. retail sales report for May showed a 0.1% increase, which was below the expected 0.2% rise. April’s sales figures were revised down from unchanged to a decrease of 0.2%. This weak U.S. economic data supports those who believe the Federal Reserve should cut interest rates sooner rather than later. CNBC’s chief economics reporter, Steve Liesman, noted that the retail sales report is important because it shows the U.S. economy is slowing down.
Market Reactions and Economic Indicators
U.S. stock indexes showed mixed results at midday. Even with the U.S. federal holiday on Wednesday, making it a busy week for U.S. economic data releases. The key external markets today included a slightly weaker U.S. dollar index following the retail sales report. Additionally, Nymex crude oil prices were higher, achieving a six-week peak.
Technical Analysis of Gold and Silver
August Gold Technical Out
August gold is currently seeing evenly matched bulls and bears in the near-term technical landscape. Bulls are aiming to close above the resistance level at the June high of $2,406.70. Bears are targeting a drop below the support at the June low of $2,304.20. The trend of “gold prices rise amid weak U.S. economic data” influences the market, with initial resistance expected at $2,350.00, followed by $2,358.80. The first support levels are at the overnight low of $2,320.20 and then at $2,304.20. Wyckoff’s Market Rating is 5.0.
July Silver Technical Outlook
July silver futures bulls hold a slight near-term technical advantage. However, daily bar charts show a downward trend. Bulls aim to close above the resistance at $31.00, while bears aim to push prices below the support at $28.00. The impact of “gold prices rise amid weak U.S. economic data” is evident as initial resistance is identified at today’s high of $29.76, followed by $30.00. First support is at $29.00, with the next at the June low of $28.73. Wyckoff’s Market Rating is 6.0.
Conclusion
Gold and silver markets are influenced by factors like weak U.S. economic data and external trends like crude oil prices. Monitoring these elements can provide valuable insights for traders and investors. For more detailed updates and analysis, you can visit Daily Gold Signal and explore the Daily Gold Update section.
