(Kitco News) - Gold prices are lower in midday U.S. trading Monday, after hitting a five-week high overnight. Risk appetite has improved a bit to start a U.S. holiday-shortened trading week, evidenced by higher stock markets in the U.S. and overseas. Profit taking from the shorter-term futures traders is also featured in gold, following recent price gains. Silver prices are near steady. August gold was last down $33.90 at $3,418.90. July silver prices were up $0.05 at $36.40.
U.S. stock indexes are solidly higher at midday. The Israel-Iran war continues, which is keeping the marketplace somewhat pensive but not panicky. The two countries have been in on-and-off armed conflict for decades. One analytical firm said as long as crude oil prices don’t spike sharply higher, traders and investors will not get overly anxious. The wild card would be if Iran somehow blocks the Strait of Hormuz, which accounts for around 20% of crude oil shipments passing through it.
There is a Group of Seven meeting early this week in Canada. Meantime, the Fed’s FOMC meeting is this week, but the Fed is not expected to cut interest rates.
The key outside markets today see the U.S. dollar index weaker. Nymex crude oil futures prices are weaker and trading around $71.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.45%.
Technically, August 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 $3,500.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the June low of $3,313.10. First resistance is seen at $3,450.00 and then at $3,477.30. First support is seen at $3,400.00 and then at $3,358.50. Wyckoff's Market Rating: 8.0.
July silver futures bulls have the solid overall near-term technical advantage. Prices are trending higher on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $38.00. The next downside price objective for the bears is closing prices below solid support at $35.00. First resistance is seen at the June high of $37.03 and then at $37.50. Next support is seen at $36.00 and then at last week’s low of $35.58. Wyckoff's Market Rating: 8.0
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