Gold loses early gains as greenback, U.S. Treasury yields push higher

Gold loses early gains as greenback, U.S. Treasury yields push higher

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(Kitco News) – Gold prices are modestly down in midday U.S. trading Monday, while silver is holding mild gains. Both metals lost altitude in morning trading as the U.S. dollar index rallied to its daily high, while U.S. Treasury yields resumed their upward advance. The yield on the 10-year U.S. Treasury note is now fetching 3.02%. August gold futures were last down $4.70 at $1,845.50. July Comex silver futures were last up $0.212 at $22.115 an ounce.

Global stock markets were mostly up overnight. U.S. stock indexes are higher at midday. Trader and investor risk appetite is a bit keener to start the trading week, amid easing Covid restrictions in China.

Two key data points of the week are the European Central Bank’s regular monetary policy meeting Thursday, at which the central bank is expected to lay out plans for tightening its monetary policy. On Friday the U.S. consumer price index report for May is set for release. The CPI is expected to be up 8.2%, year-on-year, after a rise of 8.3% in April.




The key other outside market today sees Nymex crude oil prices a bit weaker and trading around $118.50 a barrel.

Technically, August gold futures bears have the overall near-term technical advantage but the bulls are still working on a fledgling price uptrend. However, they need to show fresh power soon to keep it alive. Bulls’ next upside price objective is to produce a close above solid resistance at $1,900.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at today’s high of $1,861.20 and then at $1,875.00. First support is seen at last week’s low of $1,830.20 and then at $1,825.00. Wyckoff’s Market Rating: 3.5

Live 24 hours silver chart [ Kitco Inc. ]

July silver futures bears have the overall near-term technical advantage. However, the bulls are working on a fledgling price uptrend on the daily chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $23.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $21.00. First resistance is seen at today’s high of $22.565 and then at $23.00. Next support is seen at $21.785 and then at last week’s low of $21.41. Wyckoff’s Market Rating: 3.5.

July N.Y. copper closed down 375 points at 443.40 cents today. Prices closed near mid-range today. Prices have backed well down from last Friday’s five-week high. The copper bulls still have the overall near-term technical advantage. A three-week-old price uptrend is in place on the daily bar chart. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 465.00 cents. The next downside price objective for the bears is closing prices below solid technical support at last week’s low of 425.90 cents. First resistance is seen at 450.00 cents and then at last week’s high of 457.70 cents. First support is seen at today’s low of 443.65 cents and then at 435.00 cents. Wyckoff’s Market Rating: 6.0.



Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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