Outside markets , profit -taking put price pressure on gold, silver

(Kitco News. Mon. June 17th, 2024) – Gold and silver prices are lower in early U.S. trading Monday. Amid a lack of major, fresh fundamental news to drive the metals markets to start the trading week, gold and silver traders are focused on the outside markets, which are in a mostly bearish daily posture. The U.S. dollar index is firmer, U.S. Treasury yields have up-ticked and the competing asset class of equities sees the U.S. stock indexes at or near record highs. August gold was last down $14.90 at $2,334.20. July silver was last down $0.132 at $29.34.

Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed toward mixed openings when the New York day session begins. Despite the U.S. federal holiday on Wednesday, when U.S. markets are closed, it’s still a busy week for U.S. data, highlighted by the retail sales report on Tuesday.

There was a batch of China economic data released Monday. It was a mixed bag, as in May there was growth in industrial production and consumer spending came in stronger than expected. However, investment slowed and property prices declined. Bloomberg reported overall headline numbers pointed to a still-weak recovery.

The key outside markets today see the U.S. dollar index slightly higher. Nymex crude oil prices are a bit firmer and trading around $78.75 a barrel. The benchmark 10-year U.S. Treasury note yield is presently 4.23%.

U.S. economic data due for release Monday is light and includes the Empire State manufacturing survey.

Technically, August gold bulls and bears are on a level overall near-term technical playing field amid recent choppy trading. Bulls’ next upside price objective is to produce a close above solid resistance at the June high of $2,406.70. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the June low of $2,304.20. First resistance is seen at $2,350.00 and then at last week’s high of $2,358.80. First support is seen at Friday’s low of $2,316.70 and then at the June low of $2,304.20.

July silver futures bulls have the overall near-term technical advantage. However, prices are trending down on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $31.00. The next downside price objective for the bears is closing prices below solid support at $28.00. First resistance is seen at today’s high of $29.65 and then at $30.00. Next support is seen at $29.00 and then at this week’s low of $28.73.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com