Gold bulls squelched by keener trader/investor risk appetite
AdamSummary:
Gold rose slightly after hitting a five-week low, while silver dipped amid strong investor risk appetite. U.S. stocks surged, weakening safe-haven demand. Traders eye key economic data and technical price levels.
Gold prices are slightly up and silver prices are modestly lower in early U.S. trading Monday. Gold hit a five-week low overnight. Risk-on trading attitudes are prevalent to start the U.S. holiday-shortened trading week, and that’s bearish for the safe-haven metals. August gold was last up $5.40 at $3,293.00. July silver prices were last down $0.242 at $35.795.
Asian and European stocks were mixed overnight. U.S. stock indexes are pointed to firmer openings today in New York, with the Nasdaq and S&P 500 indexes hitting record highs. Keener trader/investor risk appetite in the general marketplace recently is boosted equities. However, a Barrons headline today reads: “Trump tariffs and inflation could rain on stock markets’ summer surge.” Weekend reports said the U.S. has cut off trade talks with Canada.
Today is the last trading day of the month and of the quarter, making it an extra special trading day for technical traders.
The key outside markets today see the U.S. dollar index weaker and hit a 3.5-year low overnight. Nymex crude oil futures prices are slightly down and trading around $65.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.251%.
U.S. economic data due for release Monday includes the Chicago ISM business survey, and the Texas manufacturing outlook survey. It’s a busy U.S. data dump during this holiday-shortened trading week. Thursday comes the U.S. data point of the week: the employment situation report for June from the Labor Department. U.S. markets are closed Friday for the Independence Day holiday.
Technically, August gold futures bulls have the overall near-term technical advantage but are fading. Bulls’ next upside price objective is to produce a close above solid resistance at $3,400.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,200.00. First resistance is seen at the overnight high of $3,307.90 and then at Friday’s high of $3,341.40. First support is seen at last week’s low of $3,266.50 and then at the overnight low of $3,250.50. Wyckoff's Market Rating: 6.0.
uly silver futures bulls have the overall near-term technical advantage but trading has turned choppy and sideways at higher levels recently. Silver bulls' next upside price objective is closing prices above solid technical resistance at the June high of $37.405. The next downside price objective for the bears is closing prices below solid support at $34.00. First resistance is seen at the overnight high of $36.12 and then at
$36.50. Next support is seen at $35.50 and then at last week’s low of $35.195. Wyckoff's Market Rating: 6.5.
source : kitco
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