(Kitco News) – Gold prices are solidly lower in morning U.S. dealings Monday, on a corrective and profit-taking pullback from recent gains. Improved trader/investor risk appetite to start the trading week is also a negative for the safe-haven metals. A rebound in the U.S. dollar index today is also a bearish daily element for the precious metals. August gold futures were last down $15.20 an ounce at $1,330.50. July Comex silver prices were last down $0.316 at $14.715 an ounce.
European and Asian stock indexes were mostly higher overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. The U.S. indexes have posted strong gains the past week and have bullish technical momentum on their side, to now suggest a test of the contract/record highs.
Trader and investor attitudes are more upbeat to start the trading week after the U.S. and Mexico late Friday reached a deal on immigration that avoided the U.S. slapping trade tariffs on its southern neighbor. However, progress on the U.S.-China trade war front remains elusive amid no signs the world’s two largest economies are coming closer to any agreement on trade matters. Discussions are ongoing, however.
In overnight news, China’s import and export data for May was downbeat. China’s imports in May were down 8.5%, year-on-year, after being up 4.0% in April. The China-U.S. trade war is mostly to blame for slowing imports. China’s exports were up 1.1% in May, year-on-year, after being down 2.7% in April.
The key “outside markets” today see Nymex crude oil prices firmer and trading just above $54.00 a barrel. The U.S. dollar index is solidly higher today on a corrective rebound from last week’s downside pressure.
U.S. economic data due for release Monday is light and includes the employment trends index.
Technically, the gold bulls still have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at the February high of $1,361.50. Bears’ next near-term downside price breakout objective is pushing August futures prices below solid technical support at $1,310.00. First resistance is seen at today’s high of $1,341.70 and then at $1,350.00. First support is seen at $1,325.00 and then at $1,320.00. Wyckoff’s Market Rating: 6.5
July silver futures bears have the overall near-term technical advantage. However, bulls are working on a fledgling price uptrend but need to show fresh power soon to keep it alive. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $15.15 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the May low of $14.265. First resistance is seen at $14.85 and then at $15.00. Next support is seen last week’s low of $14.565 and then at $14.50. Wyckoff’s Market Rating: 3.5.
By Jim Wyckoff
For Kitco News