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Gold, silver prices down on normal profit taking

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(Kitco News) - Gold and silver prices are lower in early U.S. trading Tuesday, on some routine profit-taking pressure from the shorter-term futures traders after recent good gains that saw gold prices hit a nine-year high and silver prices just Monday score an 11-month high. Bullish charts and worrisome geopolitical elements will likely have the bulls soon stepping in to buy the dip. August gold futures were last down $10.60 an ounce at $1,803.50. September Comex silver prices were last down $0.343 at $19.445 an ounce.

Global stock markets were mostly down in overnight trading. The U.S. stock indexes are pointed toward higher openings when the New York day session begins. It’s a busy week for the marketplace, as corporate earnings, central bank meetings and GDP data from China are due. Big banks’ earnings are due out today, including JP Morgan, Wells Fargo and Citigroup. U.S. traders and investors are keeping a wary eye on the spread of Covid-19 cases in the country, as California on Monday moved to again lock down indoor businesses.

China, the world’s second-largest economy, Tuesday reported its imports of U.S. goods increased 11.3% in June, year on year, after a 13.5% decline in May. Chinese exports to the U.S. rose 1.4% in the period, versus a 1.3% drop in May. China’s imports from the rest of the world were up 2.7% in June, year on year, following a drop of 16.7% in May. China’s overall exports were up 0.5% in June versus a 3.3% drop in May. These latest trade numbers from China were stronger than expected and highlight the rapid economic recovery China has seen from the pandemic lockdowns.

In other overnight news, the Euro zone got another upbeat economic report today when its industrial production report for May came in at up 12.4% from April—a record monthly rise.

The important outside markets today see Nymex crude oil prices weaker and trading around $39.80 a barrel. The U.S. dollar index is slightly up early today. The yield on the benchmark U.S. Treasury 10-year note is currently around the 0.63% level.

U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, the NFIB small business index, real earnings, and the consumer price index.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at $1,850.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at last week’s low of $1,779.20. First resistance is seen at Monday’s high of $1,818.80 and then at $1,825.50. First support is seen at today’s low of $1,791.00 and then at $1,779.20. Wyckoff's Market Rating: 8.5.

Live 24 hours silver chart [ Kitco Inc. ]

September silver futures bulls have the solid overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $20.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $18.00. First resistance is seen at Monday’s high of $19.81 and then at $20.00. Next support is seen at the overnight low of $19.24 and then at this week’s low of $19.08. Wyckoff's Market Rating: 8.5.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.