Gold and silver prices are moderately higher in early U.S. trading Tuesday, following a U.S. inflation report that was in line with market expectations. Short covering in the futures market and perceived value-buying in the cash market are features on this day. December Comex gold was last up $5.70 an ounce at $1,262.60. December Comex silver was last up $0.201 at $17.68 an ounce.
The U.S. consumer price index for September rose by 0.3%, year-on-year, which was right in line with expectations. With many market watchers thinking the Federal Reserve is on the verge of raising U.S. interest rates, inflation data worldwide will be more closely watched in the coming months. U.K. consumer prices in September rose at the fastest pace in two years, the Office for National Statistics said Tuesday. The U.K. CPI reading was up 1.0%, year-on-year, for the highest monthly rise in two years.
Higher crude oil prices Tuesday are also bullish for the raw commodity sector in general, including precious metals. Nymex crude is trading above $50.00 a barrel. The other key “outside market” finds the U.S. dollar index also bullish for the metals Tuesday, as it’s trading lower on a corrective pullback after hitting a seven-month high on Monday.
Other U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and Goldman Sachs retail sales reports, Treasury international capital data, real earnings and the NAHB housing index.
via Kitco
