Gold weaker as investor risk appetite up-ticks a bit
(Kitco News) - Gold prices are slightly down in choppy midday U.S. trading Monday. Prices have visited both sides of unchanged today. The precious metals bulls are still holding their own early this week, in the face of a modest rise in U.S. Treasury yields and a recent rally in global stock markets. August gold futures were last down $3.30 at $1,827.00. July Comex silver futures were last up $0.145 at $21.27 an ounce.
Global stock markets were mostly up overnight. U.S. stock indexes are steady to mixed at midday. The U.S. stock indexes closed at technically bullish weekly high closes last Friday. Trader and investor risk appetite is a bit more upbeat on ideas the Federal Reserve may not be so aggressive on tightening its monetary policy, for fear of setting off a recession in the U.S. economy. The recent declines in many raw commodity prices, including crude oil, are also hinting that inflationary pressures may have cooled off.
In other news, the Group of Seven industrialized nations is set to impose more economic sanctions on Russia, including banning imports of Russian gold.
Reports say Russia has defaulted on its foreign currency sovereign debt. Bloomberg reports the situation is unusual for many reasons, as Russia has the cash to pay and there is no formal declaration of default by ratings agencies as sanctions led them to withdraw their Russia ratings.
|Gold price loses early gains as U.S. pending home sales surprise on the upside in May|
The key outside markets today see Nymex crude oil prices higher and trading around $109.00 a barrel. Looking into next year, January crude oil futures are presently trading around $96.00 a barrelâ??further. The U.S. dollar index is lower in midday U.S. trading. The yield on the 10-year U.S. Treasury note is fetching 3.187%.
Technically, August gold futures bears have the overall near-term technical advantage. However, the recent sideways and choppy trading action at lower price levels is suggesting a market bottom is in place. Bulls' next upside price objective is to produce a close 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 todayâ??s high of $1,842.80 and then at last weekâ??s high of $1,850.30. First support is seen at last weekâ??s low of $1,817.70 and then at the June low of $1,806.10. Wyckoff's Market Rating: 3.5.
July silver futures bears have the firm overall near-term technical advantage. However, the bulls are eyeing the potential for a bullish double-bottom reversal pattern forming. 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 todayâ??s high of $21.535 and then at $21.75. Next support is seen at todayâ??s low of $21.08 and then at $21.00. Wyckoff's Market Rating: 2.5.
July N.Y. copper closed up 390 points at 377.85 cents today. Prices closed near mid-range today on short covering after hitting a 16-month low on Friday. The copper bears have the solid overall near-term technical advantage. A four-week-old price downtrend is in place on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 400.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 350.00 cents. First resistance is seen at todayâ??s high of 381.30 cents and then at 385.00 cents. First support is seen at todayâ??s low of 373.60 cents and then at 370.00 cents. Wyckoff's Market Rating: 1.5.