Gold, silver posting price gains ahead of FOMC minutes

(Kitco News) - Gold and silver prices are higher in early U.S. trading Tuesday, ahead of the most important U.S. data point of the week: the Federal Reserve’s Open Market Committee (FOMC) minutes that are out at 2:00 p.m. EDT this afternoon. Bullish outside markets today are lifting the metals, as crude oil prices are higher and the U.S. dollar index is weaker. U.S. Treasury yields are also falling. August gold futures were last up $14.20 at $1,808.20 and September Comex silver was last up $0.326 at $26.50 an ounce.

Global stock markets were mixed but mostly firmer overnight. The U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins, with the S&P and Nasdaq at or near record highs. Traders are awaiting Wednesday afternoon’s release of the minutes of the June FOMC meeting, hoping for clues on the timing of the Fed’s policy moves that are likely to be gradual tightening of monetary policy in the coming months. There are also growing ideas that the FOMC minutes this afternoon may not be as hawkish as some market watchers expect.

In overnight news, the European Union forecast Euro zone inflation in 2021 at 1.9% and in 2022 at 1.4%. Both numbers are up just slightly from the EU’s last forecast, but still not close to being problematic. Other inflation reports, however, have seen hotter Euro zone inflation than the EU is forecasting.