(Kitco News) - Gold prices are solidly lower in midday U.S. trading Monday. Profit taking from the shorter-term futures traders is featured following recent good gains that pushed prices to record highs last week. Silver prices are near steady. A rebound in global stock markets today also appears to be holding back the gold bulls. June gold was last down $29.60 at $3,215.10. May silver prices were last up $0.06 at $31.98.
Asian and European stock markets were mostly firmer in overnight trading. U.S. stock indexes are modestly up at midday. Over the weekend the Trump administration temporarily exempted some products from its recently imposed tariffs, including smart phones and some other electronics.
Despite the firmer tone to the global stock indexes, there is still risk aversion in the general marketplace. The Wall Street Journal today has a headline: “Signs of broad trouble emerge in corporate debt, futures, bonds.” The story details how certain debt markets are still stressed.
The key outside markets today see the U.S. dollar index down. Nymex crude oil futures prices are weaker and trading around $61.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.4%.
Technically, June gold futures bulls still have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,300.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,100.00. First resistance is seen at the contract high of $3,263.00 and then at $3,275.00. First support is seen at Friday’s low of $3,193.40 and then at $3,160.00. Wyckoff's Market Rating: 9.0.
May silver futures bulls have the overall near-term technical advantage. Prices are in an uptrend on the daily bar chart after forming a bullish V-bottom reversal pattern. Silver bulls' next upside price objective is closing prices above solid technical resistance at $34.00. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen at today’s high of $32.38 and then at $33.00. Next support is seen at the overnight low of $31.655 and then at $31.365. Wyckoff's Market Rating: 6.5.
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