(Kitco News) - Gold prices are sharply in midday U.S. trading Monday. The yellow metal paused in overnight trading but gained upside power during the U.S. day session as the U.S. stock indexes sold off, along with the U.S. dollar index. June gold was last up $46.84 at $3,345.40. May silver prices were last up $0.01 at $33.02.
U.S. stock indexes sold off in morning action due in part to a downbeat Texas manufacturing outlook survey that suggested the U.S. tariffs and related global trade tensions are starting to bite companies.
A Chinese official said over the weekend that U.S. should revoke unilateral tariffs on China if it wants to sort the trade issues between the two nations. He Yadong, a spokesperson for the Ministry of Commerce, also said that China and the U.S. are currently not in talks and the U.S. must show sincerity if it wants to talk. Shipments from China to the U.S. have plummeted 60% since the U.S. raised tariffs to 145% in April, according to broker SP Angel. Meantime, President Trump has said new tariffs on China could come in the next two to three weeks.
The key outside markets today and see the U.S. dollar index lower. Nymex crude oil futures prices are lower and trading around $61.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.227%.
Technically, June gold futures bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $3,509.90. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,200.00. First resistance is seen at Friday’s high of $3,384.10 and then at $3,400.00. First support is seen at $3,300.00 and then at last week’s low of $3,270.80 and then at $3,250.00. Wyckoff's Market Rating: 7.5.
May silver futures bulls have the firm overall near-term technical advantage. Prices are in an uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $35.00. The next downside price objective for the bears is closing prices below solid support at $32.00. First resistance is seen at last week’s high of $33.69 and then at $34.00. Next support is seen at the overnight low of $32.585 and then at $32.00. Wyckoff's Market Rating: 7.0.
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