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Gold price firmer amid friendly outside markets

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(Kitco News) - Comex gold futures prices are modestly up in early U.S. trading Monday. Silver prices are near steady. The key outside markets are friendly for the precious metals to start the trading week, as the U.S. dollar index is weaker and crude oil prices are solidly higher. The technical charts remain solidly bullish for gold and silver. June gold was last up $7.30 at $2,032.00 and July silver was down $0.05 at $25.885.

Global stock markets were mixed but mostly higher overnight. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. There is less risk aversion in the general marketplace to start the trading week. U.S. banking stocks have recovered some of their recent losses. Banking analysts will today closely scrutinize the Federal Reserve’s first-quarter Senior Loan Officer Survey, to get a gauge on how much the banking industry has pulled back in its lending practices the past few months.

President Biden on Tuesday will meet with House Speaker Kevin McCarthy and other congressional leaders to discuss raising or suspending the U.S. debt ceiling, setting the stage for a current standoff between the President and House Republicans. Biden’s invitation came after Treasury Secretary Janet Yellen notified lawmakers last week that the U.S. could default on its debt as early as June 1 if Congress does not raise or suspend the debt limit before that time.

Gold price to keep trading at historically high levels as markets monitor debt ceiling debate and credit conditions - analysts

The U.S. data point of the week is Wednesday morning’s April consumer price index report, which is expected to come in at up 5.0%, year-on-year, which would be the same as reported in the March CPI. The April core CPI is forecast at up 5.5% versus up 5.6% in the March report.

The key outside markets today see the U.S. dollar index slightly lower. Nymex crude oil prices are solidly higher and trading around $73.25 a barrel. Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching 3.462%.

U.S. economic data due for release Monday includes the employment trends index, monthly wholesale trade and the ISM semiannual report on business and the economy.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at $2,100.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the April low of $1,965.90. First resistance is seen at $2,040.00 and then at $2,050.00. First support is seen at today’s low of $2,022.00 and then at Friday’s low of $2,007.00. Wyckoff's Market Rating: 8.0

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls have the solid overall near-term technical advantage. Silver bulls' next upside price objective is closing July futures prices above solid technical resistance at $27.50. The next downside price objective for the bears is closing prices below solid support at $24.50. First resistance is seen at the April high of $26.435 and then at $26.75. Next support is seen at Friday’s low of $25.41 and then at $25.00. Wyckoff's Market Rating: 8.0.

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