Gold Slightly Up As U.S. Dollar Slips
(Kitco News) - Gold and silver prices are modestly higher in early U.S. trading Monday. A weaker U.S. dollar index on this day is working in favor of the precious metals markets bulls. August Comex gold futures were last up $1.80 an ounce at $1,301.10. July Comex silver was last up $0.084 at $16.53 an ounce.
World stock markets were mostly higher overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. Traders and investors are in generally upbeat moods following Friday’s stronger U.S. jobs report and easing concerns about the political situation in Italy.
So far early this week, the marketplace is not reacting much to reports over the weekend that said the U.S. and China have made no progress in their trade talks. Meantime, the U.S. is getting heavily criticized by the European Union, Canada and Mexico for its protectionist trade posture.
In other news overnight, the Euro zone producer price index for April was unchanged from March and up 2.0%, year-on-year. Those numbers were lower than forecast.
The other key “outside markets” today find Nymex crude oil prices weaker and trading just above $65.00 a barrel.
U.S. economic data due for release Monday includes the ISN New York report on business, manufacturers’ shipments and inventories, and the employment trends index.
Technically, August gold bears still have the slight overall near-term technical advantage. Prices are still in a seven-week-old downtrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above the May high of $1,332.40. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the May low of $1,286.80. First resistance is seen at Friday’s high of $1,304.80 and then at $1,312.60. First support is seen at last week’s low of $1,293.10 and then at the May low of $1,286.80. Wyckoff's Market Rating: 4.5
July silver futures bears have the slight overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the May low of $16.07. First resistance is seen at last week’s high of $16.615 and then at $16.74. Next support is seen at last week’s low of $16.31 and then at $16.19. Wyckoff's Market Rating: 4.5.