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Modest price gains for gold, silver as USDX weaker

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(Kitco News) - Gold and silver prices are firmer in early U.S. trading Monday, supported by a weaker U.S. dollar index to start the trading week. Weaker U.S. and global stock markets are also a bit supportive to the safe-haven metals, amid quieter summertime trading. August gold futures were last up $6.00 at $1,807.90 and September Comex silver was last up $0.202 at $25.435 an ounce.

Global stock markets were mostly lower overnight. The U.S. stock indexes are pointed toward weaker openings when the New York day session begins and very near their record highs. China stocks were hit by reports the Chinese government may act to regulate its fast-growing companies. U.S. traders and investors are a bit jittery as the Covid-19 virus is spreading again, with Dr. Anthony Fouci saying the situation is “moving in the wrong direction.”

The marketplace will be watching a meeting between U.S. and China officials this week, with early indications being that the two nations remain very wary of each other.

The key outside markets today see the U.S. dollar index lower. Nymex crude oil futures prices are weaker and trading around $71.50 a barrel. The yield on the U.S. Treasury 10-year note is presently fetching 1.225%. U.S. bond yields are falling again, suggesting inflation worries are somewhat subsiding.

U.S. economic data due for release Monday includes new residential sales and the Texas manufacturing outlook survey.

Live 24 hours gold chart [Kitco Inc.]

Technically, gold futures bulls and bears are on a level overall near-term technical playing field. Bulls’ next upside price objective is to produce a close above solid resistance at the July high of $1,835.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,775.00. First resistance is seen at the overnight high of $1,812.00 and then at $1,825.00. First support is seen at the overnight low of $1,798.60 and then at last week’s low of $1,789.10. Wyckoff's Market Rating: 5.0.

Live 24 hours silver chart [ Kitco Inc. ]

The silver bears have the firm overall near-term technical advantage. Silver bulls' next upside price objective is closing September futures prices above solid technical resistance at $26.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the March low of $23.825. First resistance is seen at last week’s high of $25.535 and then at this week’s high of $25.805. Next support is seen at $25.00 and then at the July week’s low of $24.79. Wyckoff's Market Rating: 3.0.

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.