Gold, silver prices rise as USDX continues to erode

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(Kitco News) – gold and silver price The U.S. dollar index posted solid gains in early U.S. trade on Monday, supported by sharp losses after hitting a four-week low overnight. There was also some safe-haven demand in an overall market where risk appetite was far from strong. June Gold Futures It was last up $20.70 at $1,862.50. July Comex Silver Futures It was last up $0.486 at $22.165 an ounce.

Global stock markets were mixed but mostly rose overnight. U.S. stock indexes were pointing to a higher open at the start of the New York session. U.S. stock index bulls remain in limbo as the major indexes hit 12-month lows last week and are in or near bear market territory — meaning prices are down 20% from their recent highs.

Risk appetite among traders and investors rose slightly at the start of the trading week amid reports that the U.S. may be considering lifting some trade tariffs on China. Meanwhile, China continues to battle rising coronavirus cases that have locked down some major cities in the world’s second-largest economy.

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

U.S. President Joe Biden, who is visiting Asia, laid out a new platform for economic cooperation called the Indo-Pacific Economic Framework on Monday.

Major outside markets today saw crude oil futures on the New York Mercantile Exchange trade higher at around $111.50 a barrel. Meanwhile, the U.S. dollar index fell sharply, hitting a near four-week low in early trade. The 10-year U.S. Treasury note yielded 2.815%.

U.S. economic data due on Monday will be muted, including the Chicago Fed National Activity Index. The data accelerated rapidly on Tuesday.

Technically speaking, June Gold Futures The bears have the overall near-term technical advantage, but the bulls have gained momentum. The 2.5-month downtrend remains on the daily bar chart. However, more price gains this week will offset the uptrend. Bulls’ next upside price objective is closing June futures above solid resistance at $1,900.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the May low of $1,785.00. The first resistance is at $1,875.00 and then at $1,883.00. The first level of support was the overnight low of $1,843.30, followed by Friday’s low of $1,830.60. Wyckoff’s Market Rating: 3.5.

July Silver Futures Bears have the overall near-term technical advantage. Prices are in a 2.5-month downtrend on the daily bar chart. However, more price gains this week will offset the uptrend. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $23.00 an ounce. Bears’ next downside price objective is closing prices below solid support at the May low of $20.42. The first resistance is at $22.25 and then at $22.50. The next level of support lies at the overnight low of $21.765 and then at $21.50. Wyckoff’s Market Rating: 3.0.