(Kitco News) - Gold and silver prices are weaker in early U.S. trading Monday, amid bearish daily outside market forces—a sharply higher U.S. dollar index and lower crude oil prices. August gold futures were last down $8.20 at $1,734.00. September Comex silver futures were last down $0.051 at $19.185 an ounce.
Global stock markets were mostly weaker overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins. Covid worries are again prompting risk aversion in Asia, where Shanghai reported a new Covid variant and Macau shut down its casinos and other businesses for one week. U.S. corporate earnings reports are also in focus this week.
The U.S. data point of the week will be Wednesday’s consumer price index report for June, which is seen coming in up 8.5%, year-on-year. In the May report, CPI was up 8.6% annually.
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| Gold faces a difficult second half but it's not hopeless - World Gold Council |
The key outside markets today see Nymex crude oil prices down and trading around $102.50 a barrel, pressured by the Covid concerns in Asia. The U.S. dollar index is solidly up early today. The yield on the 10-year U.S. Treasury note is fetching 3.062%. The 2-year Treasury note is yielding 3.097%, meaning the yield curve is inverted and is suggesting impending U.S. economic recession.
U.S. economic data due for release Monday includes the employment trends index.
![Live 24 hours gold chart [Kitco Inc.]](/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, the August gold futures bears have the solid overall near-term technical advantage as prices hit an 8.5-month low last Friday. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at $1,750.00 and then at $1,771.50. First support is seen at last week’s low of $1,726.00 and then at $1,720.00. Wyckoff's Market Rating: 1.5
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
September silver futures bears have the solid overall near-term technical advantage as prices hit a two-year low Wednesday. Silver bulls' next upside price objective is closing prices above solid technical resistance at the May low of $20.525. The next downside price objective for the bears is closing prices below solid support at $18.00. First resistance is seen at $19.435 and then at $19.85. Next support is seen at $18.935 and then at the July low of $18.705. Wyckoff's Market Rating: 1.5.
