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Gold price down as U.S. dollar strengthens

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(Kitco News) - Gold and silver prices are lower in early U.S. trading Monday, amid a stronger U.S. dollar index in the wake of a better-than-expected May U.S. employment report last Friday that fell into the camp of the U.S. monetary policy hawks. August gold was last down $14.10 at $1,955.50 and July silver was down $0.232 at $23.52.

Asian and European stock markets were mixed overnight. U.S. stock indexes are pointed toward mixed openings when the New York day session begins. The stronger U.S. non-farm payrolls jobs rise in last Friday’s May employment report reminded the marketplace that the Federal Reserve is likely to remain hawkish on its monetary policy for longer.  

In weekend news, Saudi Arabia decided to unilaterally cut its crude oil production by around 1 million barrels per day, starting in July. Meantime, the OPEC-plus cartel at its meeting decided to leave its collective crude oil output unchanged.

In other news, the Euro zone producer price index for May came in at up 1.0%, year-on-year, which was lower than expected.

The key outside markets today see the U.S. dollar index higher. Nymex crude oil prices are higher and are trading around $73.00 a barrel. Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching 3.747%.  

U.S. economic data due for release Monday includes the U.S. services PMI, the ISM report on business services, the global services PMI, the employment trends index, and manufacturers’ shipments, orders and inventories.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bulls have the overall near-term technical advantage but have faded a bit. 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 the May low of $1,949.60. First resistance is seen at today’s high of $1,966.00 and then at $1,975.00. First support is seen at the overnight low of $1,954.00 and then at $1,949.60. Wyckoff's Market Rating: 6.0.

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls and bears are on a level overall near-term technical playing field. Silver bulls' next upside price objective is closing July futures prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at the May low of $22.785. First resistance is seen at today’s high of $23.695 and then at $24.00. Next support is seen at $23.335 and then at $23.00. Wyckoff's Market Rating: 5.0.

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.