Profit-taking price pressure on gold, silver after recent gains

(Kitco News, Mon. July 8th, 2024) – (Kitco News) – Gold and silver prices are lower in early U.S. trading Monday, on some routine profit-taking from the shorter-term futures traders after recent good price advances. Markets’ prices don’t go straight up or straight down and the bulls can argue these mild corrections are healthy for future price uptrends to develop. August gold was last down $13.00 at $2,384.70. September silver was down $0.349 at $31.34.

Asian and European stock indexes were mixed to weaker overnight. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins and near record highs scored last Friday. The rallying stock market is a negative element for the gold and silver markets, from a competing asset class perspective.

In weekend news, a coalition of leftist parties in France, known as the New Popular Front, won the most seats in the parliamentary elections, according to early projections. The outcome represents a setback for Marine Le Pen’s anti-immigrant party. French Prime Minister Gabriel Attal says he will resign. The Euro currency fell after the projections.

The key U.S. data points of the week include Fed Chairman Powell’s speeches to the U.S. Congress on Tuesday and Wednesday, and the consumer and producer price indexes on Thursday and Friday, respectively. The key outside markets today see the U.S. dollar index slightly lower. Nymex crude oil prices are lower and trading around $82.50 a barrel. The benchmark 10-year U.S. Treasury note yield is presently 4.28%. U.S. economic reports out today is light and includes the employment
trends index and consumer credit.

Technically, August gold bulls have the firm overall near-term technical advantage. 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 $2,300.00. First resistance is seen at $2,400.00 and then at $2,406.70. First support is seen at the overnight low of $2,376.10 and then at Friday’s low of $2,356.00.

September silver futures bulls have the firm overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the May high of $33.05. The next downside price objective for the bears is closing prices below solid support at the June low of $28.90. First resistance is seen at last week’s high of $31.79 and then at $32.00. Next support is seen at $31.00 and then at Friday’s low of $30.45.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com