(Kitco News) - Gold prices are solidly higher in midday U.S. trading Monday, as the marketplace is a bit anxious following a surprise ratings agency downgrade to U.S. government debt and lingering global trade worries. Silver prices are modestly up. June gold was last up $45.70 at $3,233.80. July silver prices were last up $0.191 at $32.535.
Risk aversion is elevated to start the trading week. Moody’s ratings agency downgraded the United States’ long-term credit rating from “Aaa” to “Aa1” last Friday, citing sustained increases in federal debt and chronic fiscal deficits. The U.S. now joins Fitch and S&P Global in no longer holding a perfect rating among major credit agencies.
Financial markets were also rattled a bit when U.S. Treasury Secretary Bessent said in an interview Sunday that trade tariffs would go back to April 2 announced levels if countries don’t negotiate with the U.S. “in good faith.” Fresh economic data out of China shows the trade war with the U.S. has dented the Chinese economy.
U.S. stock indexes are mildly down at midday and well up from their daily lows.
The key outside markets today see the U.S. dollar index solidly lower. Nymex crude oil futures prices are higher and trading around $63.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.499%.
Technically, June gold futures bulls and bears are on a level overall near-term technical playing field but the bulls are fading. 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 the May low of $3,123.30. First resistance is seen at the overnight high of $3,252.90 and then at $3,275.00. First support is seen at the overnight low of $3,209.10 and then at $3,200.00. Wyckoff's Market Rating: 5.0.
July silver futures bulls and bears are on a level overall near-term technical playing field. Silver bulls' next upside price objective is closing prices above solid technical resistance at $33.48. 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 $33.48. Next support is seen at the overnight low of $32.38 and then at $32.00. Wyckoff's Market Rating: 5.0.
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