(Kitco News) – Gold and silver prices are at lower levels at the start of US trading on Monday as major foreign markets are in a daily bearish posture for precious metals – a higher US dollar index higher and lower crude oil prices. It’s a quieter news day to start the trading week, with traders focusing more on the outside markets for their direction. August gold futures lost $ 10.70 to $ 1,799.90 and September Comex silver lost $ 0.244 to $ 25.99 an ounce.
Global equity markets were mixed to weaker overnight. US stock indices point to mixed openings when the New York day session begins. This week the focus will be on US corporate earnings reports.
A feature of the market recently has been declining yields on US government bonds amid notions that US and global economic growth has stabilized from the more sustained pace seen emerging from the shackles of the pandemic. This can be extrapolated to easier longer-term monetary policies from the world’s major central banks. Compounding concerns over weaker global economic growth is a new strain of Covid-19 that is increasing in parts of the world as vaccinations have leveled off.
European Central Bank President Christine Lagarde has reportedly said that a meeting of the Governing Council on July 22 would include a review of the ECB’s forward guidance. She also said she expects the current asset purchase program to run until “at least” March 2022, in part due to the new strain of Covid that is hampering economic growth in the region. eurozone. The yield on the benchmark 10-year US Treasury bond currently stands at 1.336%.
China eased its monetary policy on Friday by lowering its reserve requirement ratio for its banks.
Major foreign markets are now seeing the US dollar index higher, while Nymex crude oil prices are lower and trading around $ 73.35 per barrel.
There is no significant US economic data to release on Monday.
Technically, the rises and falls in gold futures are on an overall technical par in the short term. The Bulls’ next bullish price target is to produce a close above the solid resistance at $ 1,850.00. The bears’ next short-term bearish price target is pushing futures prices under strong technical support to the June low of $ 1,750.10. First resistance is seen at the overnight high of $ 1,811.00 followed by the July high of $ 1,819.50. The first support is seen at $ 1,793.50 and then at $ 1,784.70. Wyckoff Market Score: 5.0
Bulls and silver bears are on a technical par in the short term. The next bullish price target for silver buyers is to close September futures prices above strong technical resistance at $ 28.00 an ounce. The next bearish price target for bears is to close prices below solid support at the June low of $ 25.58. First resistance is seen at the overnight high of $ 26.375 and then at $ 26.545. Next support is seen at last week’s low at $ 25.82 and then $ 25.58. Wyckoff Market Rating: 5.0.
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