(Kitco News) - Gold prices are trading near steady and silver prices are weaker in early U.S. trading Monday. Traders are in a wait-and-see mode following recent economic and political events and ahead of some important U.S. economic data later this week. August gold was last up $1.00 at $2,400.10. September silver was down $0.309 at $28.99.
The marketplace has had a mostly calm reaction to news U.S. President Joe Biden is dropping out of the presidential election race. Biden’s withdrawal was not a big surprise given the growing chorus of Democrats calling for him to “pass the torch” over the past couple weeks. Biden endorsed Vice-President Kamala Harris.
Meantime, China’s central bank unexpectedly cut its interest rates amid disappointment from a lack of short-term stimulus from the Third Plenum meeting Chinese officials held last week. The key seven-day repo rate was reduced to 1.7%, the first such cut in almost a year. Other lending rates were also lowered by the People’s Bank of China. Reads a Wall Steet Journal headline today: “China’s long blueprint for economy falls short on details, raising concerns.”
Asian and European stock indexes were mostly lower overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins.
The key outside markets today see the U.S. dollar index a bit weaker. Nymex crude oil prices are slightly down and trading around $79.75 a barrel. The benchmark 10-year U.S. Treasury note yield is presently 4.21%.
U.S. economic reports out Monday include the Chicago Fed national activity index. The data-release pace picks up as the week progresses, culminating with Friday’s inflation readings via the personal income and outlays report.
Technically, August gold bulls still have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the record high of $2,488.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,300.00. First resistance is seen at the overnight high of $2,414.40 and then at $2,425.00. First support is seen at the overnight low of $2,395.10 and then at $2,382.60. Wyckoff's Market Rating: 7.5.
September silver futures bulls have the slight overall near-term technical advantage but have faded badly recently. Silver bulls' next upside price objective is closing prices above solid technical resistance at $31.00. The next downside price objective for the bears is closing prices below solid support at the June low of $28.90. First resistance is seen at the overnight high of $29.615 and then at $30.00. Next support is seen at $28.90 and then at $28.50. Wyckoff's Market Rating: 5.5.
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