Gold Price Near Steady; Fresh Inputs Awaited

(Kitco News, Fri. July 9th, 2021)– Gold and silver prices are are trading not too far from unchanged levels in early U.S. trading Friday. The precious metals markets are looking for some new fundamental stimulus to drive prices, but may have to wait a while amid summertime doldrums. August gold futures were last up $0.60 at $1,801.00 and September Comex silver was last up $0.093 at $26.075 an ounce.

Global stock markets were mixed to weaker overnight. The U.S. stock indexes are pointed toward mixed to firmer openings when the New York day session begins. The stock indexes have become a bit wobbly late this week, on renewed worries about Covid-19 surging in some regions of the world. Also, political tensions between the U.S. and China have ratcheted up this year, with reports saying the U.S. is set to sanction more Chinese companies. Also, the tenor of the marketplace appears to have changed from one of strong economic recoveries igniting rising inflation, to one of stagnating economic recoveries prompting central banks to keep their money policies very accommodative for longer.

Reports Friday say the Biden administration is set to tackle big technology companies that are monopolistic. President Biden will reportedly sign an executive order to loosen the grip of big tech companies.

In other overnight news, China’s inflation readings eased in June, prompting China’s central bank to ease its monetary policy. The People’s Bank of China reduced the reserve ratio requirement by 0.5% to boost lending. China’s consumer price index was reported up 1.1% in June versus a rise of 1.3% in May, year-on-year. The producer price index in June rose 8.8% compared to up 9.0% in May, year-on-year.

The key outside markets today see the U.S. dollar index weaker, while Nymex crude oil prices are firmer and trading around $73.75 a barrel. The yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.336%.

U.S. economic data due for release Friday is light and includes monthly wholesale trade.

Technically, gold futures bulls and bears are on a level overall near-term technical playing field. Bulls’ next upside price objective is to produce a close above solid resistance at $1,850.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the June low of $1,750.10. First resistance is seen at the overnight high of $1,808.00 and then at this week’s high of $1,819.50. First support is seen at Thursday’s low of $1,793.50 and then at this week’s low of $1,784.70. Wyckoff’s Market Rating: 5.0

The silver bulls and bears are on a level overall near-term technical playing field. Silver bulls’ next upside price objective is closing September futures prices above solid technical resistance at $28.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the June low of $25.58. First resistance is seen at Thursday’s high of $26.31 and then at $26.545. Next support is seen at the overnight low of $25.82 and then at $25.58.

Posted by :

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com