Gold price higher following tame U.S. inflation data

(Kitco News, Wed. June 11th, 2025) – Gold prices are posting good gains in early U.S. trading Wednesday, following a key U.S. inflation report that did not raise any new red flags. Silver prices are modestly down. August gold was last down $0.40 at $3,354.40. July silver prices were last up $0.034 at $36.835.

The just-released U.S. data point of the week, the consumer price index report for May, saw the CPI rise 2.4%, year-on-year, right in line with market expectations and compares to up 2.3% in the April report. The core CPI (minus food and energy) came in at up 2.8%, year-on-year, close to being in line with market expectations and was up 2.8% in the April report. The report does not suggest problematic price inflation down the road and falls into the camp of the U.S. monetary policy doves.

Asian and European stocks were mixed to firmer overnight. U.S. stock indexes are pointed to firmer openings today in New York, and bumped up a bit after the CPI data. Trader and investor spirits were somewhat lifted after news reports said the U.S. and China have agreed on a framework to restore trade relations following two days of negotiations in London. No specifics were provided.

In other news, the World Bank said U.S. economic growth cut be cut in half due to tariffs and trade wars. The Bank forecast U.S. GDP growth of 1.4% in 2025, down from the 2.8% growth rate in 2024. The bank forecast global economic growth at 2.3% this year, down from its previous forecast of up 2.7%.

The key outside markets today see the U.S. dollar index slightly down. Nymex crude oil futures prices are up and trading around $66.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.456%.

Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, real earnings, the weekly DOE liquid energy stocks report and the monthly Treasury budget statement.

Technically, August gold futures bulls have the firm overall near-term technical advantage.  Bulls’ next upside price objective is to produce a close above solid resistance at last week’s high of $3,427.70. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $3,250.00. First resistance is seen at this week’s high of $3,370.40 and then at $3,400.00. First support is seen at the overnight low of $3,335.40 and then at $3,325.00.

July silver futures bulls have the solid overall near-term technical advantage. Prices are trending higher on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $40.00. The next downside price objective for the bears is closing prices below solid support at $34.00. First resistance is seen at this week’s high of $37.03 and then at $37.50. Next support is seen at $36.00 and then at $35.80.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com