Gold and silver see good price gains as USDX erosion continues

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(Kitco News) – He went And silver prices Strong gains are recorded in early US trading on Monday, buoyed by sharp losses in the US dollar index, which hit a four-week low overnight. Some safe haven demand is also emerging amid an overall market that sees risk appetite out of strength. Gold futures for June It was last up $20.70 at $1862.50. COMEX silver futures contract for July It was last up $0.486 at $22.165 an ounce.

Global stock markets were mixed but mostly rose overnight. US stock indices are pointing to higher openings when the New York daily session begins. US stock index bulls remain in a tight spot, with major indexes last week hitting 12-month lows and are in or shrugging off bear market territory – meaning prices are 20% off their recent highs.

Traders and investors’ appetite for risk increased slightly to start the trading week due to reports that the US may consider lifting some trade tariffs on China. Meanwhile, China continues to struggle with rising Covid-19 cases that have shut down parts of major cities in the world’s second-largest economy.

In other news overnight, European Central Bank President Christine Lagarde said the European Central Bank will likely raise interest rates at its July meeting.

US President Joe Biden is on an Asian tour and on Monday laid out a new economic cooperation platform called the Indo-Pacific Economic Framework.

Today, the major overseas markets are seeing an increase in the NYMEX Crude Oil futures contract and are trading around $111.50 per barrel. Meanwhile, the US dollar index fell sharply and reached its lowest level in almost four weeks in early trade. The 10-year US Treasury yield brings in 2.815%.





US economic data due for release on Monday is light and includes the Chicago Fed Activity Index. The pace of data rebounded quickly on Tuesday.

24 hour gold chart [Kitco Inc.]

Technically speaking, the Gold futures for June Bears have the overall technical advantage in the near term but the bulls are gaining momentum. There is still a 2.5 month old downtrend on the daily bar chart. However, further price gains this week will negate the upside. The next bullish price target for the bulls is to achieve a close in the June futures contract above the strong resistance at $1,900.00. The next near-term downside price target for the bears is pushing futures prices below strong technical support at the May low of $1,785.00. We see the first resistance at $1,875.00 and then at $1,883.00. The first support is seen at the overnight low at $1,843.30 and then the Friday low at $1,830.60. Wyckoff Market Rating: 3.5.

24 hour silver chart [ Kitco Inc. ]


July silver futures contract Bears have the overall technical advantage in the near term. Prices are in a 2.5-month-old downtrend on the daily bar chart. However, further price gains this week will negate the upside. The next bullish price target for the silver bulls is to close prices above the strong technical resistance at $23.00 an ounce. The bears’ downtrend price next target is a price close below the strong support level of the May low at $20.42. We see the first resistance at $22.25, then $22.50. The next support is seen at the overnight low at $21.765 then $21.50. Wyckoff Market Rating: 3.0.

Not giving an opinion: The opinions expressed in this article are those of the author and may not reflect the views of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; However, Kitco Metals Inc. cannot. Nor does the author guarantee this accuracy. This article is for informational purposes only. It is not a solicitation to conduct any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. does not accept The author of this article will be liable for losses and/or damages arising from the use of this publication.

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