(Kitco News) – Gold and silver prices were firmer early in the US session on Monday, supported by a weaker US dollar index to start the trading week. Weaker US and global equity markets are also somewhat supportive of safe-haven metals, amid a calmer summer trading environment. August gold futures were up $ 6.00 to $ 1,807.90 and September Comex silver was up $ 0.22 to $ 25.435 an ounce.
Global stock markets were mostly down overnight. US stock indices are pointing towards lower openings when the New York day session begins and very close to their record highs. Chinese stocks have been hit by reports that the Chinese government may act to regulate its fast-growing companies. US traders and investors are a little nervous as the Covid-19 virus spreads again, with Dr Anthony Fouci saying the situation is “going in the wrong direction”.
The market will attend a meeting between US and Chinese officials this week, with the first indications being that the two countries remain very suspicious of each other.
The main foreign markets are now seeing the US dollar index decline. Nymex crude oil futures prices are lower and are trading around $ 71.50 per barrel. The yield on the 10-year US Treasury bill is currently 1.225%. US bond yields are falling again, suggesting that inflation fears are easing somewhat.
US economic data due for release Monday includes new residential sales and the Texas Manufacturing Outlook Survey.
Technically, bulls and bears 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 solid resistance at the July high of $ 1,835.00. The bears’ next short term bearish price target is pushing futures prices below the strong technical support at $ 1,775.00. First resistance is seen at the overnight high of $ 1,812.00 and then at $ 1,825.00. First support is seen at the overnight low of $ 1,798.60, followed by last week’s low of $ 1,789.10. Wyckoff Market Rating: 5.0.
Silver bears have the overall short-term technical advantage. The next bullish price target for Silver Bulls is to close September futures prices above strong technical resistance at $ 26.00 an ounce. The next bearish price target for bears is to close prices below solid support at the March low of $ 23.825. First resistance is seen at last week’s high of $ 25.535 and then at this week’s high at $ 25.805. Next support is seen at $ 25.00 and then to the July week low at $ 24.79. Wyckoff Market Rating: 3.0.
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