Gold prices are sharply down in early U.S. trading Monday, as the geopolitical situation in the Middle East has taken a rapid and surprising turn toward de-escalation of military conflict—at least for now. August gold was last down $61.10 at $3,333.90. July silver prices were last down $0.092 at $36.095.
News that Iran and Israel have agreed to a ceasefire, and notions that Iran probably won’t continue to retaliate against the U.S., have put keener risk appetite back into the marketplace today. President Trump wrote on social media: “On the assumption that everything works as it should, which it will, I would like to congratulate both countries, Israel and Iran, on having the stamina, courage, and intelligence to end, what should be called, the 12-day war.”
Asian and European stocks were mostly higher overnight. U.S. stock indexes are pointed to sharply higher openings today in New York.
In other news, China slightly eased its monetary policy today by injecting liquidity into its financial markets.
The key outside markets today see the U.S. dollar index lower. Nymex crude oil futures prices are lower and trading around $66.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.33%.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook retail sales report, international transactions and the current account, the monthly house price index, the S&P Case Shiller home price indexes, the Richmond Fed business survey, and the consumer confidence index. Federal Reserve Chair Jerome Powell also speaks to a House panel on U.S. monetary policy.
Technically, August gold futures bulls have the overall near-term technical advantage but are fading a bit. Bulls’ next upside price objective is to produce a close above solid resistance at the June high of $3,476.30. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $3,300.00. First resistance is seen at the overnight high of $3,385.00 and then at $3,400.00. First support is seen at $3,313.10 and then at $3,300.00. Wyckoff’s Market Rating: 6.5
July silver futures bulls have the overall near-term technical advantage. However, a bearish broadening pattern has formed on the daily bar chart, which begins to suggest a market top is in place. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the June high of $37.405. The next downside price objective for the bears is closing prices below solid support at $35.00. First resistance is seen at $36.50 and then at $37.00.
Source: Kitco
