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Gold price bounces from nine-week low overnight

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(Kitco News) - Gold prices are firmer in early U.S. trading Tuesday, on perceived bargain hunting and some short covering in the futures market after the yellow metal hit a nine-week low overnight. A weaker U.S. dollar index and a dip in U.S. Treasury yields on the first day of the U.S. trading week are supporting the price recovery in gold. August gold was last up $10.60 at $1,973.70 and July silver was down $0.02 at $23.34.

Asian and European stock markets were mostly firmer overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. Trader and investor attitudes are more upbeat to start the U.S. trading week. Republican and Democratic leaders have agreed upon a deal to raise the U.S. government’s debt limit. House and Senate votes on the matter are likely to occur this week.  

In overnight news, the World Gold Council reported its survey shows 24% of central banks intend to increase their gold holdings in 2023. Reasons include higher inflation, geopolitical turmoil and interest rate worries.

The key outside markets today see the U.S. dollar index down on a corrective pullback after hitting a two-month high last week. Nymex crude oil prices are lower and trading around $71.75 a barrel. Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching 3.725%.  

Gold price trades below $1,950 ahead of Congress debt ceiling vote and June Fed decision

U.S. economic data due for release Tuesday includes the monthly house price index, the S&P Core Logic house indexes, the consumer confidence index and the Texas manufacturing outlook survey.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bulls have the overall near-term technical advantage but have faded recently. Prices hit a nine-week low overnight and are trending down on the daily bar chart. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at $1,985.00 and then at $2,000.00. First support is seen at $1,960.00 and then at the overnight low of $1,949.60. Wyckoff's Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

The silver bears have the overall near-term technical advantage. Prices hit a two-month low last week and are trending lower on the daily chart. Silver bulls' next upside price objective is closing July futures prices above solid technical resistance at $24.50. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at the overnight high of $23.51 and then at $23.75. Next support is seen at $23.00 and then at the May low of $22.785. Wyckoff's Market Rating: 4.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.