Gold and silver see some price pressure amid bearish charts

New York (Jun 28)  Gold and silver prices are modestly lower in early U.S. trading Monday. Scant risk aversion in the marketplace and bearish near-term technical charts are keeping the bears in near-term control of the metals, in quieter summertime markets. August gold futures were last down $3.60 at $1,774.30 and September Comex silver was last down $0.026 at $26.095 an ounce.

Global stock markets were mostly weaker overnight. The U.S. stock indexes are pointed toward mixed openings when the New York day session begins and are at or near their record highs. There is still little risk aversion in subdued summertime trading. That’s allowing the stock indexes to continue to drift sideways to higher. The Wall Street Journal reported the U.S. stock market is seeing its quietest stretch of trading since 2017. Trading is likely to remain muted until Friday morning’s U.S. employment situation report from the Labor Department, which is arguably the most important U.S. data point of the month.

The marketplace paid little attention to reports U.S. warplanes attacked Iran-backed militias near the Syria-Iraq border.

The key outside markets today see the U.S. dollar index slightly down. Nymex crude oil futures are a bit weaker and trading around $74.00 a barrel after hitting a 2.5-year high of $74.45 overnight. Energy traders are awaiting Thursday’s OPEC meeting. The yield on the benchmark U.S. Treasury 10-year note is presently fetching 1.517%.

U.S. economic data due for release Monday is light and includes the Texas manufacturing outlook survey.

Technically, gold futures bears have the overall near-term technical advantage. A bearish pennant pattern has formed on the daily bar chart. Prices are trending lower on the daily chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,850.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at the overnight high of $1,786.10 and then at last week’s high of $1,795.60. First support is seen at the overnight low of $1,770.40 and then at the June low of $1,761.20.

KitcoNews