Gold price weaker, at nearly 4-month low
(Kitco News) - Gold prices are down and scored a nearly four-month low in early U.S. trading Monday. Technical selling in the futures markets amid fully bearish near-term charts, higher bond yields and a still-strong U.S. dollar index are a caustic cocktail for the metals markets bulls at present. June gold futures were last down $4.10 at $1,804.10. July Comex silver futures were last up $0.239 at $21.235 an ounce.
Global stock markets were mixed but mostly lower overnight. U.S. stock indexes are pointed toward weaker openings when the New York day session begins. The S&P 500 stock index last week had its worse week in 11 years. The U.S. index is now flirting with being in a bear market that is defined by the indexes being down 20% from its recent high. The Russia-Ukraine war, Covid lockdowns in China and inflation fears are hitting the equities hard.
In overnight news, China reported its April industrial output down 2.9%, year on year, which was lower than the gain of 1.0% that was expected by the trade.
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Meantime, the European Union cut the Euro zone 2022 economic growth rate forecast to 2.7% from its 4.0% earlier estimate.
McDonald’s announced it is pulling its businesses out of Russia due to Russia’s aggression against Ukraine.
The key outside markets today see Nymex crude oil futures prices lower and trading around $109.50 a barrel. Meantime, the U.S. dollar index is weaker in early trading. The yield on the 10-year U.S. Treasury note is fetching 2.921%.
U.S. economic data due for release Monday includes the Empire State manufacturing survey, and Treasury international capital data.
Technically, the June gold futures bears have the solid overall near-term technical advantage. A two-month-old downtrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at $1,850.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,750.00. First resistance is seen at the overnight high of $1,815.70 and then at Friday’s high of $1,827.60. First support is seen at the overnight low of $1,785.00 and then at $1,775.00. Wyckoff's Market Rating: 2.5
July silver futures bears have the solid overall near-term technical advantage. Prices Friday hit a 22-month low and are trending sharply down on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $22.50 an ounce. The next downside price objective for the bears is closing prices below solid support at $20.00. First resistance is seen at $21.50 and then at $21.625. Next support is seen at the overnight low of $20.835 and then at last week’s low of $20.42. Wyckoff's Market Rating: 1.5.