(Kitco News) - Gold prices are solidly lower and hit a two-week low near midday Monday, while silver is trading near steady. Gold is seeing pressure from sharp gains in the U.S. dollar index and a slight uptick in U.S. Treasury yields. Better risk appetite in the general marketplace is also bearish for the safe-haven metals. August gold was last down $27.50 at $3,307.90. September silver prices were last down $0.07 at $38.29.
In overnight news, the United States and the European Union over the weekend agreed on a trade deal that will see the EU face 15% tariffs on most of its exports to the U.S., including automobiles, to avoid a trade war with the U.S. The U.S. dollar index’s solid gains and the Euro currency’s solid losses today, in the wake of the trade deal, suggest the marketplace thinks the U.S. came out with the better terms.
The U.S. and China are expected to extend their tariff truce by another three months, reported the South China Morning Post over the weekend. The report comes ahead of trade talks between U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng in Stockholm, Sweden.
The Federal Reserve’s Open Market Committee (FOMC) meeting begins Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chairman Jerome Powell. Bloomberg reports Fed officials “are determined to hold interest rates steady, though an increasingly contentious debate may bolster expectations for rate cuts in the fall.” Powell is “under intense pressure” from President Trump to lower interest rates. Still, the Fed is widely expected to leave its benchmark Fed funds rate range unchanged this week.
The other key outside market today sees Nymex crude oil futures are up and trading around $66.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.412%.
Technically, August gold futures bulls have the overall near-term technical advantage but are fading. Bulls’ next upside price objective is to produce a close above solid resistance at the July high of $3,451.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the June low of $3,250.50. First resistance is seen at today’s high of $3,345.40 and then at Friday’s high of $3,376.60. First support is seen at today’s low of $3,300.00 and then at $3,275.00. Wyckoff's Market Rating: 6.0.
September silver futures bulls have the solid overall near-term technical advantage. Prices are in an uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $40.00. The next downside price objective for the bears is closing prices below solid support at $36.00. First resistance is seen at $39.00 and then at $39.57. Next support is seen at $38.00 and then at $37.50. Wyckoff's Market Rating: 7.5.
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