Gold, silver see mixed price action Monday, awaiting FOMC
(Kitco News) - Gold and silver prices are narrowly mixed in early U.S. trading Monday, on some more chart consolidation after recent gains. Bulls in both metals are still enjoying near-term price uptrends on the daily charts, suggesting the path of least resistance for prices will remain sideways to higher. June gold futures were last down $1.30 at $1,776.30 and May Comex silver was last up $0.025 at $26.10 an ounce.
The main economic event of the week will be the Federal Reserve’s Open Market Committee (FOMC) meeting that begins Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chair Powell. While no change in U.S. monetary policy is expected, the marketplace will closely scrutinize the Fed’s inflation outlook and any comments on the future path of monetary policy.
Global stock markets were mixed overnight. U.S. stock indexes are pointed toward mixed openings when the New York day session begins. Traders and investors are weighing the bullish aspect of strengthening global economies that are emerging from the pandemic, but also the bearish aspect of the virus that is still raging in some regions of the global, including a major crisis in India. Also somewhat denting investor enthusiasm is a move by the Biden administration to raise taxes.
The key outside markets today see the U.S. dollar index lower amid a near-term price downtrend in place. Nymex crude oil prices are modestly lower and trading around $61.15 a barrel. Meantime, the yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.57%. For perspective, the German 10-year bond (bund) is presently yielding -0.256% and the U.K. 10-year bond (gilt) is fetching 0.753%.
U.S. economic data due for release Monday includes durable goods orders and the Texas manufacturing outlook survey.
Technically, June gold futures bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,723.20. First resistance is seen at last week’s high of $1,798.40 and then at $1,800.00. First support is seen at Friday’s low of $1,769.50 and then at last week’s low of $1,763.50. Wyckoff's Market Rating: 6.0
The silver bulls have the overall near-term technical advantage. A four-week-old price uptrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $27.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $24.68. First resistance is seen at $26.50 and then at last week’s high of $26.73. Next support is seen at last week’s low of $25.67 and then at $25.50. Wyckoff's Market Rating: 6.0.