(Kitco News) - Gold prices are sharply down and silver futures prices also lower in midday U.S. trading Monday. Much better risk appetite has returned to the marketplace after the weekend news that the world’s two largest economies are seeing a significant thawing in their cold war on trade. Profit taking and weak long liquidation from the shorter-term gold and silver futures traders are featured today. June gold was last down $113.20 at $3,230.60. July silver prices were last down $0.259 at $32.655.
General marketplace attitudes are much more upbeat to start the trading week following the weekend news that the U.S. and China are working on better trade relations. Most tariffs were slashed on each other’s goods for a period of 90 days. The 90-day accord signals a notable de-escalation in the ongoing trade conflict between the two economic superpowers. The deal was announced after high-level negotiations in Geneva, Switzerland, and is seen as a crucial step toward stabilizing global markets and restoring business confidence. Joint statement: “After taking the aforementioned actions, the parties will establish a mechanism to continue discussions about economic and trade relations,” the joint statement said, adding this dialogue would be led by Chinese Vice Premier He Lifeng, U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer.
U.S. stock indexes are sharply higher and at multi-week highs near midday.
The key outside markets today see the U.S. dollar index sharply higher and at a four-week high. Nymex crude oil futures prices are higher and trading around $62.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.46%.
Technically, June gold futures bulls have lost their overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,350.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,200.00. First resistance is seen at $3,250.00 and then at $3,275.00. First support is seen at the May low of $3,209.40 and then at $3,200.00. Wyckoff's Market Rating: 5.0.
July silver futures bulls have the slight overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $34.015. The next downside price objective for the bears is closing prices below solid support at $31.00. First resistance is seen at $33.00 and then at the overnight high of $33.20. Next support is seen at $32.00 and then at last week’s low of $31.86. Wyckoff's Market Rating: 5.5.
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