(Kitco News) - Gold prices are moderately higher near midday Monday. Silver prices are slightly up. Amid a lack of fresh, markets-moving news to start the trading week, the precious metals market traders are looking at the key “outside markets” that are leaning friendly for metals prices. The U.S. dollar index is lower today and U.S. Treasury yields have down-ticked. August gold was last up $13.10 at $2,359.60. July silver was last up $0.07 at $30.49.
U.S. stock indexes are lower at midday, which is also a positive daily element for the precious metals markets.
The U.S. data point of the week, if not the month, comes with Friday’s May employment situation report from the Labor Department. The key non-farm payrolls number is seen coming in at up 178,000 versus the April report showing a gain of 175,000 jobs.
The key outside markets today see the U.S. dollar index down. Nymex crude oil prices are sharply lower and trading around $74.25 a barrel. The sell off in the oil market comes despite OPEC announcing it will keep its production cuts in place. Lower oil prices today are somewhat limiting the upside in the metals markets. The benchmark 10-year U.S. Treasury note yield is presently 4.412%.
Technically, August gold bulls have the overall near-term technical advantage but have faded. A bearish double-top reversal pattern has formed 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 the contract high of $2,477.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the May low of $2,308.70. First resistance is seen at Friday’s high of $2,381.20 and then at last week’s high of $2,388.00. First support is seen at the overnight low of $2,334.80 and then at $2,325.00. Wyckoff's Market Rating: 6.0.
July silver futures bulls have the solid overall near-term technical advantage. However, a four-week-old uptrend on the daily bar chart has stalled out. Silver bulls' next upside price objective is closing prices above solid technical resistance at the May high of $32.75. The next downside price objective for the bears is closing prices below solid support at $29.00. First resistance is seen at $31.00 and then at $31.50. Next support is seen at the overnight low of $29.94 and then at $29.50. Wyckoff's Market Rating: 7.0
