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Gold a bit weaker as traders seek fresh inputs

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(Kitco News) - Gold prices are modestly lower in midday U.S. trading Monday, but well up from session lows. The key outside markets are in a slightly bearish daily posture for the precious metals today—a firmer U.S. dollar index and weaker crude oil prices. It’s a quieter news day to start the trading week, which has traders focusing more on the outside markets for direction while they await new fundamental developments. August gold futures were last down $4.10 at $1,806.50 and September Comex silver was last up $0.021 at $26.255 an ounce.

Global stock markets were mixed to weaker overnight. The U.S. stock indexes are firmer at midday. Focus this week will be on U.S. corporate earnings reports.

A feature in the marketplace recently has been falling U.S. government bond yields (which is bullish for gold and silver) amid notions that U.S. and global economic growth has leveled off from the stronger pace seen coming out of the pandemic’s shackles. Such can be extrapolated to easier monetary policies for a longer time from the major world’s major central banks. Adding to concerns about less robust global economic growth is a new strain of Covid-19 that is surging in some parts of the world at the same time vaccinations have tailed off.

European Central Bank President Christine Lagarde reportedly said a July 22 Governing Council meeting will include a revision of the ECB’s forward guidance. She also said she expects the current asset purchase program to run until “at least” March 2022, due in part to the new Covid strain denting economic growth in the Euro zone. The yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.336%.

China last Friday eased its monetary policy by lowering is reserve requirement ratio for its banks.

The key outside markets today see the U.S. dollar index a bit higher and still in a near-term price uptrend, while Nymex crude oil prices are lower and trading around $73.35 a barrel.

There was no major U.S. economic data released Monday.

Technically, the gold bulls have the slight overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $1,850.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the June low of $1,750.10. First resistance is seen at today’s high of $1,811.00 and then at the July high of $1,819.50. First support is seen at today’s low of $1,791.00 and then at last week’s low of $1,784.70. Wyckoff's Market Rating: 5.5

Live 24 hours gold chart [Kitco Inc.]

The silver bulls and bears are on a level overall near-term technical playing field. 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 $25.00. First resistance is seen at today’s high of $26.375 and then at $26.545. Next support is seen at $26.00 and then at last week’s low of $25.82. Wyckoff's Market Rating: 5.0.

Live 24 hours silver chart [ Kitco Inc. ]

September N.Y. copper closed down 375 points at 430.90 cents today. Prices closed nearer the session low today. The copper bulls have the slight overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 450.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 400.00 cents. First resistance is seen at today’s high of 436.40 cents and then at the July high of 440.25 cents. First support is seen at the July low of 422.65 cents and then at 420.00 cents. Wyckoff's Market Rating: 5.5.

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.