(Kitco News) - Gold prices are solidly lower in early U.S. trading Monday, as the shorter-term futures traders are ringing the cash register and taking profits after recent gains. Silver prices are near steady. June gold was last down $24.50 at $2,350.50. July silver was last down $0.006 at $28.50.
Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed to toward slightly higher openings when the New York day session begins. It’s a quieter start to the trading week for the general marketplace, with no major U.S. economic reports due out today.
Traders and investors are awaiting key U.S. inflation data for April out this week—the producer price index on Tuesday and the consumer price index on Wednesday. PPI is seen up 0.3%, month-on-month, compared to a rise of 0.2% in the March report. CPI is seen up 0.4%, compared to the March report showing a rise of 0.4%. The annual CPI April reading is seen up 3.6% compared to up 3.8% in the March report.
The key outside markets today see the U.S. dollar index slightly weaker. Nymex crude oil prices are firmer trading around $78.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is fetching 4.49%.
Technically, the gold futures bulls have the firm overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at $2,400.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,300.00. First resistance is seen at today’s high of $2,370.80 and then at last week’s high of $2,385.30. First support is seen at the overnight low of $2,344.10 and then at $2,330.00. Wyckoff's Market Rating: 7.0.
The silver bulls have the firm overall near-term technical advantage and have gained good power this week. Silver bulls' next upside price objective is closing July futures prices above solid technical resistance at $30.00. The next downside price objective for the bears is closing prices below solid support at $27.00. First resistance is seen at $28.75 and then at $29.00. Next support is seen at the overnight low of $28.185 and then at $28.00. Wyckoff's Market Rating: 7.0
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