(Kitco News) – Gold and silver prices are trading modestly lower in early U.S. dealings Monday, as the key outside markets are prompting some selling pressure—a higher U.S. dollar index and lower crude oil prices. Once again, gold prices are also appearing to follow the U.S. stock market, which is weaker Monday morning. June gold futures were last down $7.70 an ounce at $1,706.20. July Comex silver prices were last down $0.073 at $15.705 an ounce.
Global stock markets were mixed in overnight trading, with Asian stock indexes mostly higher and European stocks mostly down. There are some new concerns about a second wave of Covid-19 sweeping countries already hit hard by the pandemic. South Korea and Singapore are seeing a resurgence in cases. This development comes as many major global economies are starting to reopen as their citizens become less patient regarding being quarantined.
There is still some unease in the marketplace regarding still-tense U.S.-China relations. The world’s two largest economies have been exchanging barbs over the origins of Covid-19, with President Trump suggesting China may have manufactured the virus in a laboratory. While U.S. and China trade officials have communicated in recent days and reaffirmed China’s commitment to purchase U.S. agricultural products, President Trump implied Friday he still may sanction China over its handling of the pandemic in its early stages. “I’m having a very hard time with China,” Trump said Friday.
China over the weekend said it would continue to stimulate its economy to support its recovery from the pandemic.
Bitcoin prices are getting hammered Monday after hitting an 11-week high last Friday.
The important outside markets today see Nymex futures lower early today and trading around $24.25 a barrel. The U.S. dollar index is higher today. The yield on the benchmark U.S. Treasury 10-year note is currently around 0.68%.
U.S. economic reports out Monday are light and include the employment trends index.
Technically, the gold bulls have the overall near-term technical advantage amid an uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at the April high of $1,788.80. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,666.20. First resistance is seen at the overnight high of $1,715.80 and then at $1,725.00. First support is seen at the overnight low of $1,605.20 and then at last week’s low of $1,683.00. Wyckoff’s Market Rating: 7.0
July silver futures bulls have the slight overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the April high of $16.505 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.00. First resistance is seen at $16.00 and then at $16.25. Next support is seen at the overnight low of $15.51 and then at $15.25. Wyckoff’s Market Rating: 5.5.By Jim Wyckoff