Gold and silver prices are near steady to start the trading week. That’s not too disappointing for the precious metals bulls, given the stronger U.S. dollar index today and that risk appetite is strong enough to have pushed the major U.S. stock indexes to record highs overnight. August gold was last up $0.10 at $3,335.90. September silver prices were last down $0.115 at $38.25.
Asian and European stocks were mixed to firmer overnight. U.S. stock indexes are pointed to slightly higher openings today in New York
In overnight news, the United States and the European Union over the weekend agreed on a trade deal that will see the EU face 15% tariffs on most of its exports to the U.S., including automobiles, to avoid a trade war with the U.S. The deal was announced by President Trump and European Commission President Ursula von der Leyen, who said the deal would bring “stability” and “predictability.” The EU agreed to purchase $750 billion in U.S. energy products and invest $600 billion in the U.S., among other commitments, as part of the deal. “This is the biggest deal ever made,” said Trump. European stock markets rallied Monday following the news, with U.S. stock indexes also pointed to firmer openings when the New York day session begins. The U.S. dollar index was showing solid gains and the Euro currency solid losses in the wake of the trade deal.
Also, the U.S. and China are expected to extend their tariff truce by another three months, reported the South China Morning Post over the weekend. The world’s two largest economies will not impose additional tariffs on each other during the extension, according to the newspaper. The current pause was set to end on Aug. 12. The report comes ahead of trade talks between U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, scheduled to start today in Stockholm, Sweden.
The Federal Reserve’s Open Market Committee (FOMC) meeting begins Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chairman Jerome Powell. Bloomberg reports Fed officials “are determined to hold interest rates steady, though an increasingly contentious debate may bolster expectations for rate cuts in the fall.” Powell is “under intense pressure” from President Trump to lower interest rates. Still, the Fed is widely expected to leave its benchmark Fed funds rate range unchanged this week.
The key outside markets today see the U.S. dollar index solidly higher. Nymex crude oil futures are up and trading around $66.0 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.378%.
U.S. economic data due for release Monday includes the Texas manufacturing survey.
Technically, August gold futures bulls have the overall near-term technical advantage but are fading. Bulls’ next upside price objective is to produce a close above solid resistance at the July high of $3,451.70. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $3,300.00. First resistance is seen at $3,350.00 and then at Friday’s high of $3,376.60. First support is seen at the overnight low of $3,303.00 and then at $3,300.00. Wyckoff’s Market Rating: 6.0.
September silver futures bulls have the solid overall near-term technical advantage. Prices are in an uptrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $40.00. The next downside price objective for the bears is closing prices below solid support at $36.00. First resistance is seen at $39.00 and then at $39.57. Next support is seen at $38.00 and then at $37.50.
Source: Kitco
