Gold and Silver Prices Fall as U.S. Dollar Rises
Gold and silver prices are lower in early U. S. trading Monday. The metals are seeing modest pressure from a higher U.S. dollar index and a rise in U.S. Treasury yields to start a U.S. holiday-shortened trading week. August gold was last down $9.40 at $1,920.20 and September silver was down $0.05 at $22.97.
Mixed Stock Markets and Quieter Trading
Asian and European stock markets were mixed to higher in quieter overnight trading. U. S. stock indexes are pointed toward mixed openings when the New York day session begins. The S&P stock index futures hit a 14-month high last Friday. Look for quieter trading today as many American traders and investors are taking an extra day off, ahead of the U.S. Independence Day holiday Tuesday when all U.S. markets are closed. Some U.S. markets close early today.
Upcoming Economic Reports and High-Level Meetings
It’s still a busy week for the marketplace as the U. S. employment situation report for June is out Friday. The key non-farm payrolls number is forecast up 240,000 versus a gain of 339,000 in the May report. U. S. Treasury Secretary Janet Yellen travels to China Thursday for meetings with high-level Chinese officials. In overnight news, the Eurozone June manufacturing purchasing managers index (PMI) came in at 43.4, which was slightly lower than market expectations. A reading below 50.0 suggests contraction in the sector.
Key Outside Markets
The key outside markets today see the U. S. dollar index higher. Nymex crude oil prices are firmer and trading around $71.25 a barrel. Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching 3.849%. U. S. economic due for release Monday includes the U.S. manufacturing PMI, the ISM report on business manufacturing, the global manufacturing PMI, and construction spending.
Technical Analysis
Technically, the gold futures bears have the overall near-term technical advantage. A six-week-old price downtrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at $2,000.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at the overnight high of $1,917.80 and then at this week’s high of $1,943.40. First support is seen at the overnight low of $1,908.10 and then at $1,900.00. Wyckoff’s Market Rating: 4.0
The silver bears have the overall near-term technical advantage. Prices are in a six-week-old downtrend on the daily bar chart. Silver bulls’ next upside price objective is closing September futures prices above solid technical resistance at the June high of $24.835. The next downside price objective for the bears is closing prices below solid support at the March low of $20.425. First resistance is seen at last week’s high of $23.335 and then at $23.50. Next support is seen at last week’s low of $22.485 and then at the June low of $22.34. Wyckoff’s Market Rating: 4.0.
