(Kitco News) - Gold prices are posting strong losses in early U.S. trading Tuesday, on profit-taking pressure and weak long liquidation in the futures market, as trader and investor risk appetites have up-ticked to start the U.S. holiday-shortened trading week. Silver prices are solidly lower, too. June gold was last down $77.20 at $3,288.60. July silver prices were last down $0.629 at $32.98.
Trader and investor attitudes are much more upbeat Tuesday following the weekend news that President Trump will delay his 50% tariffs on the European Union to July 9. Trump last Friday said the new tariffs would go into effect on June 1. The extension gives the two countries more time to negotiate.
Asian and European stock markets were mixed to firmer in overnight trading. U.S. stock indexes are pointed to sharply higher openings today in New York, after a three-day holiday weekend.
The key outside markets today see the U.S. dollar index higher. Nymex crude oil futures prices are near steady and trading around $61.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.456%.
U.S. economic data due for release Tuesday includes durable goods orders, the monthly house price index, the S&P Core-Logic house price indexes, the consumer confidence index and the Texas manufacturing outlook survey.
Technically, June gold futures bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,400.00. 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 $3,300.00 and then at last week’s high of $3,366.50. First support is seen at $3,250.00 and then at $3,225.00. Wyckoff's Market Rating: 6.5.
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 the May low of $31.78. First resistance is seen at $33.50 and then at $34.015. Next support is seen at $32.50 and then at $32.00. Wyckoff's Market Rating: 5.5.
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