Gold, silver weaker as U.S. dollar index hits 20-yr. high

(Kitco News) – Gold and silver prices are modestly down in lazy, summertime U.S. trading at midday Monday. Bearish daily outside market forces squelched the metals market bulls today—a sharply higher U.S. dollar index and weaker crude oil prices. August gold futures were last down $6.50 at $1,735.80. September Comex silver futures were last down $0.076 at $19.16 an ounce.

Global stock markets were mostly weaker overnight. U.S. stock indexes are toward lower at midday. Covid worries are again prompting risk aversion, especially in Asia, where Shanghai reported a new Covid variant and Macau shut down its casinos and other businesses for one week. U.S. corporate earnings reports are also in focus this week.

The U.S. data point of the week will be Wednesday’s consumer price index report for June, which is seen coming in up 8.5%, year-on-year. In the May report, CPI was up 8.6% annually.

The key outside markets today see Nymex crude oil prices weaker and trading around $103.75 a barrel, pressured by the Covid concerns in Asia. The U.S. dollar index is solidly up and hit a 20-year high today. The yield on the 10-year U.S. Treasury note is fetching 2.982%.

Technically, August gold futures prices hit an 8.5-month low last Friday. Bears have the solid overall near-term technical advantage. Prices are in a four-month-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at $1,750.00 and then at $1,771.50. First support is seen at last week’s low of $1,726.00 and then at $1,715.00. Wyckoff’s Market Rating: 1.0.

September silver futures prices hit a two-year low last week. The silver bears have the solid overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the May low of $20.525 an ounce. The next downside price objective for the bears is closing prices below solid support at $18.00. First resistance is seen at $19.435 and then at $19.85. Next support is seen at last week’s low of $18.705 and then at $18.50. Wyckoff’s Market Rating: 1.0.

September N.Y. copper closed down 1,050 points at 341.80 cents today. Prices closed nearer the session low and closed at a 1.5-year low today. The copper bears have the solid overall near-term technical advantage. A steep five-week-old price downtrend is in place on the daily bar chart. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 385.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 320.00 cents. First resistance is seen at 350.00 cents and then at 358.00 cents. First support is seen at today’s low of 338.65 cents and then at the July low of 327.30 cents. Wyckoff’s Market Rating: 1.0.

Shared by Golden State Mint on GoldenStateMint.com