Gold a bit weaker in lazy summertime trading
(Kitco News) - Gold prices are modestly lower in lackluster midday U.S. trading Tuesday, on the first official day of summer. A solid rebound in the U.S. stock indexes and rising bond yields are weighing on the safe haven metal. August gold futures were last down $3.50 at $1,837.10. July Comex silver futures were last up $0.158 at $21.75 an ounce.
Global stock markets were mixed to higher overnight. U.S. stock indexes are solidly up at midday. U.S. markets were closed for the Juneteenth holiday on Monday. Trader and investor risk appetite has improved just a bit. Still, the U.S. stock indexes remain in price downtrends are not far above their recent bear-market lows. U.S. economic recession and inflation remain on traders’ and investors’ minds.
Bitcoin and other cryptocurrencies have this week rebounded from their recent slides, with Bitcoin up about 20% from its for-the-move low reached last Saturday.
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The key outside markets today see Nymex crude oil prices up and trading around $110.50 a barrel. The U.S. dollar index is lower in midday trading. The yield on the 10-year U.S. Treasury note is fetching around 3.27%. For perspective, the German 10-year bund is yielding 1.725% and the U.K. 10-year Gilt yield is at 2.593%.
Technically, the August gold futures bears have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at the June high of $1,882.50. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at the overnight high of $1,848.40 and then at $1,861.50. First support is seen at $1,825.00 and then at $1,816.30. Wyckoff's Market Rating: 3.5
July silver futures bears have the firm overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the June high of $22.565 an ounce. The next downside price objective for the bears is closing prices below solid support at the May low of $20.42. First resistance is seen at $22.00 and then at $22.25. Next support is seen at the overnight low of $21.43 and then at $21.25. Wyckoff's Market Rating: 3.0.