Steady price action in gold, silver; fresh inputs awaited

(Kitco News, Tues. June 28th, 2022) – Gold and silver prices are not trading far from unchanged in quieter summertime trading early Tuesday. Traders are awaiting new fundamental drivers for daily price action. Still, the precious metals bulls are showing resilience despite a modest rise in U.S. Treasury yields this week and the recent rally in global stock markets. August gold futures were last up $0.50 at $1,825.10. July Comex silver futures were last up $0.042 at $21.215 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. Trader and investor risk appetite is more upbeat on news China is loosening its Covid restrictions. Also, there are also notions in the marketplace the Federal Reserve may not be so aggressive on tightening its monetary policy, after recent downbeat U.S. economic data hints of impending recession.

The key outside markets today see Nymex crude oil prices higher and trading around $111.50 a barrel. The U.S. dollar index is near steady in early U.S. trading. The yield on the 10-year U.S. Treasury note is fetching 3.222%.

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U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and chain store sales indexes, the monthly house price index, the S&P/Core-Logic house price indexes, the Richmond Fed business survey and the consumer confidence index.

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 $1,830.90 and then at this week’s high of $1,842.80. 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 this week’s overnight high of $21.535 and then at $21.75. Next support is seen at $21.00 and then at $20.845.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com