Gold Monday sees normal pause in a bull market
(Kitco News) - Gold prices are trading near unchanged in midday U.S. trading Monday. There is still some safe-haven demand underpinning the yellow metal amid heightened concerns about the Covid-19 pandemic and a second wave hitting global economies. There is also some profit taking seen by the shorter-term futures traders to start the trading week. August gold futures were last up $0.50 an ounce at $1,780.80. September Comex silver prices were last down $0.113 at $18.055 an ounce.
Global stock markets were mixed and choppy in overnight trading. U.S. stock indexes are higher at midday. Trader and investor risk appetite, overall, continues to pull back as the Covid-19 pandemic continues to spread in many countries. News headlines to start the trading week highlight the pandemic’s worldwide death toll has passed 500,000 and the total number of reported cases is above 10 million.
It's a holiday-shortened U.S. trading week, as markets are closed Friday for the Independence Day holiday. The U.S. economic highlight of the week will be Thursday morning’s monthly jobs report from the Labor Department. In June, the key non-farm payrolls number is expected to be up 3.15 million, with the unemployment rate forecast at 12.4%.
The important outside markets today see Nymex crude oil prices higher and trading around $39.50 a barrel. The U.S. dollar index is a bit firmer at midday today. The yield on the benchmark U.S. Treasury 10-year note is currently around the 0.7% level.
Technically, August gold futures bulls still have the solid overall near-term technical advantage. Gold bulls' next upside near-term price objective is to produce a close above solid technical resistance at $1,800.00. Bears' next near-term downside price objective is pushing prices below solid technical support at last week’s low of $1,753.50. First resistance is seen at today’s high of $1.790.40 and then at the June high of $1,796.10. First support is seen at $1,775.00 and then at $1,764.10. Wyckoff's Market Rating: 8.0
September silver futures bulls have the firm overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the April high of $19.125 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the June low of $17.175. First resistance is seen at today’s high of $18.285 and then at last week’s high of $18.425. Next support is seen at last week’s low of $17.595 and then at $17.50. Wyckoff's Market Rating: 7.0.
September N.Y. copper closed up 165 points at 269.55 cents today. Prices closed nearer the session high today and closed at a five-month high close. The copper bulls have firm the overall near-term technical advantage. Prices are in a 3.5-month-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 280.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 255.70 cents. First resistance is seen at last week’s high of 271.45 cents and then at 273.00 cents. First support is seen at today’s low of 266.80 cents and then at 265.00 cents. Wyckoff's Market Rating: 7.0.