Gold, silver down as greenback bulls flex their muscles

Get all the essential market news and expert opinions in one place with our daily newsletter. Receive a comprehensive recap of the day's top stories directly to your inbox. Sign up here!

(Kitco News) - Gold and silver prices are lower in midday U.S. trading Tuesday, but up from their daily lows. Silver notched a seven-week low today. An appreciating U.S. dollar index that hit a two-month high today, as well as rising U.S. Treasury yields, have the gold and silver market bulls in hiding. Chart-based selling is also featured recently as the near-term technical postures for both metals have deteriorated. June gold was last down $8.60 at $1,968.40 and July silver was down $0.301 at $23.56.

Asian and European stock markets were mixed to weaker overnight. U.S. stock indexes are slightly lower at midday. Reports said President Biden and House Speaker McCarthy on Monday afternoon had productive talks on the U.S. debt-ceiling extension. Both are scheduled to meet again this week on the matter. U.S. Treasury Secretary Janet Yellen has reiterated that the U.S. government could run out of money by June 1 if no new debt-extension deal is reached.

The apparent progress on the U.S. debt talks may be prompting some added selling pressure on the safe-haven gold and silver markets. Also, Federal Reserve officials’ recent comments have been generally still leaning more hawkish than dovish on U.S. monetary policy, which is another bearish element for the metals.

The key outside markets today see the U.S. dollar index higher and hitting a two-month high overnight. Nymex crude oil prices are higher and trading around $73.50 a barrel. Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching 3.74%. 

Technically, June gold futures bulls still have the overall near-term technical advantage but have faded. Prices are in a three-week-old downtrend on the daily bar chart, to suggest a near-term market top is in place. Bulls’ next upside price objective is to produce a close 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 today’s high of $1,975.70 and then at this week’s high of $1,984.80. First support is seen at the May low of $1,954.40 and then at $1,950.00. Wyckoff's Market Rating: 6.0

July silver futures prices hit a seven-week low today. The silver bears have the overall near-term technical advantage. Prices are in a three-week-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at today’s high of $23.81 and then at $24.00. Next support is seen at today’s low of $23.235 and then at $23.00. Wyckoff's Market Rating: 4.0.

July N.Y. copper closed down 270 points at 365.80 cents today. Prices closed nearer the session low today and hit a six-month low. The copper bears have the firm overall near-term technical advantage. Prices are in a five-week-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 385.00 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 370.50 cents and then at this week’s high of 373.75 cents. First support is seen at today’s low of 362.20 cents and then at 360.00 cents. Wyckoff's Market Rating: 3.0.