Modest price gains in gold to start trading week

(Kitco News,  Mon. June 27th, 2022:) – Gold and silver prices are firmer in early U.S. trading Monday. The precious metals bulls are holding their own to start the trading week, despite a modest rise in U.S. Treasury yields and a rally in global stock markets. August gold futures were last up $4.10 at $1,834.30. July Comex silver futures were last up $0.27 at $21.395 an ounce.

Global stock markets were mostly up overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. The U.S. stock indexes closed at technically bullish weekly high closes last Friday. Trader and investor risk appetite is a bit more upbeat on ideas the Federal Reserve may not be so aggressive on tightening its monetary policy, for fear of setting off a recession in the U.S. economy. The recent declines in many raw commodity prices, including crude oil, are also hinting that inflationary pressures may have cooled off.

In other news, the Group of Seven industrialized nations is set to impose more economic sanctions on Russia, including banning imports of Russian gold.

Reports say Russia has defaulted on its foreign currency sovereign debt. Bloomberg reports the situation is unusual for many reasons, as Russia has the cash to pay and there is no formal declaration of default by ratings agencies as sanctions led them to withdraw their Russia ratings.

The key outside markets today see Nymex crude oil prices slightly higher and trading around $107.75 a barrel. Looking into next year, January crude oil futures are presently trading around $95.00 a barrel—further. The U.S. dollar index is lower in early U.S. trading. The yield on the 10-year U.S. Treasury note is fetching 3.162%.

Gold price see little reaction after U.S., Canada, Britain, and Japan ban new Russian gold imports

U.S. economic data due for release Monday includes durable goods orders, pending home sales and the Texas manufacturing outlook survey.

Technically, the August gold futures bears have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at the June high of $1,882.50. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at the overnight high of $1,842.80 and then at last week’s high of $1,850.30. First support is seen at last week’s low of $1,817.70 and then at the June low of $1,806.10.

July silver futures bears have the firm overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the June high of $22.565 an ounce. The next downside price objective for the bears is closing prices below solid support at the May low of $20.42. First resistance is seen at the overnight high of $21.535 and then at $21.75. Next support is seen at the overnight low of $21.08 and then at $21.00.
Posted by :

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com