Gold, silver weaker as USDX rallies, bond yields rise
(Kitco News) - Gold and silver prices are weaker in midday U.S. trading Tuesday. The safe-haven metals are being pinched by a solid rally in the U.S. dollar index today and rising U.S. Treasury yields early this week. However, losses are being limited as the U.S. stock indexes are selling off and near session lows at midday today. August gold futures were last down $3.00 at $1,821.70. July Comex silver futures were last down $0.333 at $20.83 an ounce.
(If you get a chance, make sure to check out my brief “Special Report” on gold that is on Kitco’s news page. I show one chart that every gold trader/investor needs to examine.)
Trader and investor risk appetite is a bit more upbeat early this week due in part to news China is loosening its Covid restrictions. That lifted global stock markets overnight. Also, there are also notions in the marketplace the Federal Reserve may not be so aggressive on tightening its monetary policy, after recent downbeat U.S. economic data hints of impending recession.
The key outside markets today see Nymex crude oil prices higher and trading around $111.00 a barrel. The U.S. dollar index is solidly up at midday. The yield on the 10-year U.S. Treasury note is fetching 3.3%.
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 today’s high of $1,830.90 and then at this week’s high of $1,842.80. First support is seen at last week’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 prices closed at a six-week-low close today. The silver bears have the solid overall near-term technical advantage and gained fresh power today. 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 today’s high of $21.355 and then at this week’s high of $21.535. Next support is seen at the June low of $20.545 and then at $20.42. Wyckoff's Market Rating: 2.0.
July N.Y. copper closed down 70 points at 375.55 cents today. Prices closed nearer the session low today. 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 today’s high of 384.30 cents and then at 390.00 cents. First support is seen at today’s low of 373.25 cents and then at 370.00 cents. Wyckoff's Market Rating: 1.5.