Gold prices are near unchanged in early U.S. trading Tuesday. Some mild short covering in the futures market and bargain hunting in the spot market are featured. Bullish outside markets on this day—a weaker U.S. dollar index and firmer crude oil prices—are temporarily keeping the sellers on the sidelines. December Comex gold was last up $0.90 at $1,090.30 an ounce. September Comex silver was last steady at $14.515 an ounce.
The market place was quieter overnight as the summertime doldrums have set in for European and North American traders.
In overnight news, producer prices in the Euro zone were down 0.1% in June, month-on-month, and down 2.2% year-on-year. This is another clue that world deflationary pressures have not gone away and in fact are creeping back into discussions on world economic health matters. The European Central Bank would like to see an annual inflation rate of up 2.0%. There was a U.S. personal consumption report on Monday that did give a bit more upbeat view on the U.S. inflation front, showing that consumer price inflation is creeping up a bit, but still below where the Federal Reserve wants it to be.
India’s central bank kept its interest rates unchanged, it was announced Tuesday. No change in rates was expected for the third-largest economy in Asia. Australia’s central bank also held its interest rates steady, it was reported Tuesday.