Gold prices are trading near steady in early U.S. action Monday as the market pauses in its major but mature bull run. A rebound in global stock markets today appears to be holding back the gold bulls. Silver prices are posting good gains. June gold was last down $1.60 at $3,243.00. May silver prices were last up $0.435 at $32.345.
Asian and European stock markets were mostly firmer in overnight trading. U.S. stock indexes are pointed to solidly higher openings today in New York. Over the weekend the Trump administration temporarily exempted some products from its recently imposed tariffs, including smart phones and some other electronics.
Despite the firmer tone to the global stock indexes, there is still risk aversion in the general marketplace. The Wall Street Journal today has a headline: “Signs of broad trouble emerge in corporate debt, futures, bonds.” The story details how certain debt markets are still stressed.
The tenor of the global trade turmoil at present may be changing. Reads a Dow Jones Newswires headline today: “U.S. allies are sitting out Trump’s trade war with China.” The report says, “America needs its allies and partners for what is shaping up as a protracted contest for geopolitical primacy now that President Trump has unleaded a trade war against China. They are in no rush to take sides.”
The key outside markets today see the U.S. dollar index down. Nymex crude oil futures prices are higher and trading around $62.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.444%.
There is no major U.S. economic data due for release Monday. However, several Federal Reserve officials are scheduled to give speeches today.
Technically, June gold futures bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,300.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $3,100.00. First resistance is seen at the contract high of $3,263.00 and then at $3,275.00. First support is seen at the overnight low of $3,221.10 and then at $3,200.00. Wyckoff’s Market Rating: 9.0.
May silver futures bulls have the overall near-term technical advantage. Prices are in an uptrend on the daily bar chart after forming a bullish V-bottom reversal pattern. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $34.00. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen at $32.75 and then at $33.00. Next support is seen at the overnight low of $31.765 and then at $31.365.
