Gold Prices At 5-Month Low As U.S. Dollar Continues Ascent
(Kitco News) - Gold prices are moderately down and hit another five-month low in early U.S. trading Monday. The U.S. dollar index continues its northerly trek and hit a six-month high overnight. The appreciating greenback has been a major bearish outside market force working against the precious metals markets for the past two months. Upbeat risk appetite in the marketplace is also keeping buyers away from the safe-haven gold and silver markets. June Comex gold futures were last down $6.40 an ounce at $1,284.90. July Comex silver was last down $0.03 at $16.425 an ounce.
World stock markets were higher overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins.
The world marketplace has been assuaged by news the U.S. and China have agreed to set aside their trade dispute and not slap tariffs on each other’s goods, for now. U.S. Treasury Secretary Mnuchin made that announcement over the weekend.
In other news, European traders and investors are still nervous regarding the potential for Italy’s anti-establishment parties to form a government, and then pulling out of the European Union. Such has caused the yield spread between German and Italian government bonds to widen substantially.
The benchmark 10-year U.S. Treasury note yield is trading around 3.07% on Monday morning, on some increasing concerns about rising inflationary pressures.
The other key “outside market” today finds Nymex crude oil prices near steady and trading above $71.00 a barrel.
U.S. economic data due for release Monday is light and includes the Chicago Fed national activity index. Three Federal Reserve Bank presidents give speeches today that will be closely monitored.
Technically, June gold bears have the overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above what is now solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the December low of $1,247.20. First resistance is seen at today’s high of $1,291.40 and then at $1,294.00. First support is seen at today’s low of $1,281.20 and then at $1,275.00. Wyckoff's Market Rating: 3.5
July silver futures bears have the overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $16.865 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at $16.565 and then at last week’s high of $16.76. Next support is seen at the overnight low of $16.28 and then at last week’s low of $16.19. Wyckoff's Market Rating: 3.0.