Price gains in gold, silver as USDX fades, crude oil rallies

(Kitco News, Mon. July 18, 2022) – Gold and silver prices are trading moderately higher in early U.S. trading Monday. Bullish outside market that see the U.S. dollar index solidly lower and crude oil prices higher are helping to lift the precious metals markets to start the trading week. A lack of fresh, markets-moving economic or geopolitical news early this week has metals traders looking at the outside markets for direction. August gold futures were last up $10.10 at $1,713.60. September Comex silver futures were last up $0.146 at $18.74 an ounce.

Global stock markets were higher overnight. U.S. stock indexes are pointed toward higher openings when the New York day session beings. Corporate earnings reports are on the front burner of the stock markets early this week. Lackluster, lower-volume summertime trading may pervade many financial markets in the coming weeks, until the Labor Day holiday weekend in early September. Traders and investors will be focused more on family vacations before school starts.

Traders and investors are looking ahead to Thursday when the European Central Bank holds its regular monetary policy meeting. The ECB is expected to raise interest rates for the first time in 11 years. The U.S. Federal Reserve is expected to raise its key interest rate by at least 0.75% at next week’s FOMC meeting.

The key outside markets today see Nymex crude oil prices higher and trading around $99.50 a barrel. The U.S. dollar index is solidly lower in early U.S. trading. The yield on the 10-year U.S. Treasury note is fetching 2.95%.

U.S. economic data due for release Monday is light and includes the NAHB housing market index and the Treasury international capital data report.

Technically, the August gold futures bears have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $1,750.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,650.00. First resistance is seen at the overnight high of $1,722.00 and then at $1,735.00. First support is seen at $1,700.00 and then at last week’s low of $1,695.00.

September silver futures bears have the solid overall near-term technical advantage as prices hit a two-year low overnight. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $19.50. The next downside price objective for the bears is closing prices below solid support at $17.00. First resistance is seen at $19.00 and then at $19.36. Next support is seen at $18.50 and then at $18.00.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com