Price gains for gold, Silver as Outside Markets Bullish

(Kitco News, Tues. July 6th, 2021) – Gold and silver prices are solidly higher in early U.S. trading Monday with the markets hitting nearly three-week highs. Bullish outside markets on this day are helping to propel the metals, as crude oil prices have hit a 6.5-year high and the U.S. dollar index is weaker. Some chart-based buying is also featured to start the U.S. trading week, as the near-term technical postures for gold and silver futures have improved a bit. August gold futures were last up $27.30 at $1,810.60 and September Comex silver was last up $0.304 at $26.805 an ounce.

Global stock markets were mixed to flat overnight. The U.S. stock indexes are pointed toward weaker openings when the New York day session begins, with the S&P and Nasdaq poking to new record highs, following a three-day U.S. holiday weekend. Summertime, low-volatility trading doldrums may continue this week, amid notions the major central banks of the world may have to keep their money policies easier for longer following recent economic data that was not deemed robust enough to start to pull back the reins on very accommodative money policies. Traders are looking ahead to Wednesday afternoon’s release of the minutes of the June FOMC meeting. Australia’s central bank left its monetary policy unchanged at its meeting Tuesday and indicated it won’t raise interest rates before 2024.

In other overnight news, the Euro zone reported its May retail sales at up 5.6% from April and up 9.0% year-on-year. Those numbers beat market expectations.

The key outside markets early today see the U.S. dollar index slightly lower. Nymex crude oil futures are solidly higher and hit a 6.5-year high of $76.98 a barrel overnight. Energy traders are buzzing about the recently concluded OPEC meeting that ended in disagreement with no changes to oil output. That appears bullish near-term but could be bearish long-term as Saudi Arabia and the United Arab Emirates are in sharp disagreement on the UAE’s production level. Such could unravel the oil cartel down the road and lead to all-out pumping by the cartel members. Meantime, the yield on the benchmark U.S. Treasury 10-year note is presently fetching 1.432%. Treasury yields have been falling recently.

U.S. economic data due for release Tuesday includes the U.S. services PMI, the global services PMI, the ISM report on business services, the employment trends index and the TIPP/IBD economic optimism index.

Technically, gold futures bears have the slight overall near-term technical advantage. A four-week-old downtrend on the daily bar chart appears to have stalled out. 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 $1,818.00 and then at $1,825.00. First support is seen at $1,800.00 and then at the overnight low of $1,784.70. Wyckoff’s Market Rating: 4.5

The silver bears have the slight overall near-term technical advantage. However, a six-week-old downtrend on the daily bar chart has been negated. 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 the overnight high of $26.84 and then at $27.00. Next support is seen at the overnight low of $26.50 and then at $26.25

Posted by :

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com