(Kitco News) - Gold and silver prices are just modestly lower in midday U.S. trading Monday but are well up from early session lows. The safe-haven metals are seeing mild selling pressure to start the week due to improved trader/investor risk appetite in the general marketplace that last week pushed the major U.S. stock indexes to record highs. August gold was last down $8.30 at $3,334.90. September silver prices were last down $0.224 at $36.86.
The BRICS (Brazil, Russia, India, China and South Africa) summit started this week, with Brazil hosting in Rio. President Trump has warned that countries aligning themselves with the BRICS group and their ‘Anti-American’ policies may be vulnerable to further tariffs. Metals market watchers are closely monitoring this meeting due to its longer-term implications for gold prices.
The key outside markets today see the U.S. dollar index firmer. Nymex crude oil futures prices are firmer and trading around $68.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.358%.
Technically, August 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 $3,200.00. First resistance is seen at the overnight high of $3,355.00 and then at last week’s high of $3,376.90. First support is seen at the overnight low of $3,304.40 and then at $3,300.00. Wyckoff's Market Rating: 6.5.
September silver futures bulls have the overall near-term technical advantage but trading has turned choppy and sideways at higher levels recently. Silver bulls' next upside price objective is closing prices above solid technical resistance at the June high of $37.73. The next downside price objective for the bears is closing prices below solid support at $35.00. First resistance is seen at $37.00 and then at today’s high of $37.435. Next support is seen at today’s low of $36.325 and then at $36.00. Wyckoff's Market Rating: 7.0.
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