(Kitco News) – Gold prices are near steady in early-morning U.S. trading Monday, as the bulls are trying to “right the ship” following the strong selling pressure seen late last week. Working in the precious metals bulls’ favor to start the trading week are a weaker U.S. dollar index and lower U.S. stock index prices. June gold futures were last up $0.40 an ounce at $1,276.10. July Comex silver prices hit another 5.5-month low overnight and were last up $0.012 at $14.40 an ounce.
Gold prices lost around $35.00 in value last Thursday and Friday, producing some near-term technical damage. Bulls need to stabilize their market early this week in order to avoid a solid, fresh leg down in prices from occurring.
World stock markets were mostly weaker overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins. The U.S.-China trade war drags on, with any agreement between the two largest economies in the world not seen imminent. This matter will likely continue to be a drag on world stock markets until it’s come to a successful conclusion.
In overnight news, the German Bundesbank reported it expects Germany’s economy to stagnate in the second quarter of this year. Germany’s economy is the workhorse of the European Union.
In other news, Australia’s conservative government got a surprising victory in weekend national elections. And India’s Prime Minister Modi has likely won re-election over the weekend, according to exit polls.
The key “outside markets” today see the U.S. dollar index near steady. Meantime, Nymex crude oil prices are also trading around unchanged and just below $63.00 a barrel.
U.S. economic data due for release Monday is light and includes the Chicago Fed national activity index.
Technically, the gold bears have gained the slight overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at $1,300.00. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at the May low of $1,267.30. First resistance is seen at $1,280.00 and then at $1,285.00. First support is seen at the overnight low of $1,273.30 and then at $1,270.00. Wyckoff’s Market Rating: 4.5
July silver futures bears have the solid overall near-term technical advantage. Prices are in a three-month-old downtrend on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $15.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the November low of $14.175. First resistance is seen at Friday’s high of $14.555 and then at $14.75. Next support is seen at the overnight low of $14.355 and then at $14.30. Wyckoff’s Market Rating: 2.0.
By Jim Wyckoff
For Kitco News