Gold price weaker on mild technical selling
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(Kitco News) - Gold and silver prices are modestly lower in early U.S. trading Monday. The two markets are seeing a bit of pressure on chart-based selling as their near-term technical postures have deteriorated a bit recently. Traders are also awaiting fresh fundamental inputs to help drive price direction. June gold was last down $4.30 at $1,977.30 and July silver was down $0.095 at $23.965.
Asian and European stock markets were mostly higher overnight. U.S. stock indexes are pointed toward near steady openings when the New York day session begins. In focus again this week are the U.S. debt-ceiling extension talks that have so far produced no concrete results. President Biden and House leaker McCarthy are scheduled to meet on the matter today. U.S. Treasury Secretary Janet Yellen said early June is a "hard deadline" for the U.S. government needing its debt limit increased in order to avoid defaulting on some of its financial obligations.
The key outside markets today see the U.S. dollar index weaker. Nymex crude oil prices are near steady and trading around $71.50 a barrel. Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching 3.663%.
There is no major U.S. economic data due for release Friday, but the data release pace picks up fast on Tuesday.
Technically, the gold futures bulls have the overall near-term technical advantage but have faded recently. Prices are trending down on the daily bar chart. Bulls' next upside price objective is to produce a close in June futures above solid resistance at the May high of $2,085.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at $1,988.80 and then at $2,000.00. First support is seen at last week's low of $1,954.40 and then at $1,950.00. Wyckoff's Market Rating: 6.0
The silver bears have the overall near-term technical advantage. Prices are trending lower on the daily chart. Silver bulls' next upside price objective is closing July futures prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at Friday's high of $24.185 and then at last week's high of $24.395. Next support is seen at the overnight low of $23.775 and then at last week's low of $23.485. Wyckoff's Market Rating: 4.0.
Source: Kitco NEWS
