(Kitco News) - Gold and silver prices are up a bit in early U.S. trading Monday. 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 weaker and U.S. Treasury yields have down-ticked. August gold was last up $3.80 at $2,349.60. July silver was last up $0.105 at $30.545.
Asian and European stock indexes were mixed to firmer overnight. U.S. stock indexes are pointed toward mixed openings when the New York day session begins.
In overnight news, OPEC has agreed to extend its crude oil production cuts in a bid to boost oil prices.
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 slightly down. Nymex crude oil prices are near steady and trading around $76.75 a barrel. The benchmark 10-year U.S. Treasury note yield is presently 4.49%.
U.S. economic data due for release Monday includes the U.S. manufacturing PMI, the ISM report on business manufacturing, construction spending, the global manufacturing PMI and domestic auto industry sales.
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
(Hey! My “Markets Front Burner” weekly email report is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. Plus, I’ll throw in an educational feature to move you up the ladder of trading/investing success. And it’s free! Email me at jim@jimwyckoff.com and I’ll add your email address to my Front Burner list.)
