((Kitco News) - Gold prices are posting good gains in early U.S. trading Monday, on safe-haven demand as trade tensions between the world’s two largest economies are rising again. A lower U.S. dollar index and solidly higher crude oil prices are also bullish outside markets for the precious metals to start the trading week. August gold was last up $69.40 at $3,384.80. July silver prices were last up $0.431 at $33.46.
Risk aversion is keener to start the trading week after President Trump over the weekend accused China of violating a recent trade deal. Trump also said U.S. tariffs on steel and aluminum will be increased this week. Reads a Barron’s headline today: “U.S.-China trade talks get ugly.”
Asian and European stocks were mixed but mostly lower overnight. U.S. stock indexes are pointed to lower openings today in New York.
In other news, JP Morgan chief Jamie Dimon warned in a speech at an economic forum that “you are going to see a crack in the bond market” unless the U.S. takes steps to address its spiraling national debt. “It’s going to happen.”
The key outside markets today see the U.S. dollar index solidly lower. Nymex crude oil futures prices are solidly higher and trading around $63.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.52%.
U.S. economic data due for release Monday includes the U.S. manufacturing purchasing managers index, the ISM report on business manufacturing, and construction spending.
Technically, August gold futures bulls have the firm overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,450.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,200.00. First resistance is seen at the $3,395.30 and then at $3,400.00. First support is seen at $3,350.00 and then at the overnight low of $3,319.40. Wyckoff's Market Rating: 7.0.
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 the May low of $31.78. First resistance is seen at t $33.745 and then at $34.015. Next support is seen at $33.00 and then at last week’s low of $32.80. Wyckoff's Market Rating: 5.5.
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