Gold and silver futures are weaker but well up from daily lows
New York (Jun 14) Gold and silver futures are lower in midday U.S. trading Monday, but have made a good recovery from the sharp losses seen in early trading, which took gold prices to a four-week low. The safe-haven bulls are struggling amid a global trading environment that sees little risk aversion. Some chart-based selling pressure is also seen now, as the near-term technical postures for both metals have deteriorated, especially in gold. August gold futures were last down $14.00 at $1,864.40 and July Comex silver was last down $0.101 at $28.045 an ounce.
Global stock markets were mixed but mostly higher overnight. U.S. stock indexes are pointed mixed at midday. The S&P 500 and Nasdaq stock index futures hit record highs today. Chinese and Australian markets were closed for holidays.
The U.S. data point of the week is the Federal Reserve’s FOMC meeting that begins Tuesday morning and ends Wednesday afternoon with a statement. While no major changes are expected for U.S. monetary policy, focus will be on the Fed’s tenor on inflation prospects and when the central bank will start to taper its very easy money policies. Fed officials recently have hinted they will begin discussing a timetable for reducing its bond-buying program (quantitative easing) sooner rather than later.
The key outside markets today see the U.S. dollar index a bit weaker. Nymex crude oil prices are up and trading around $71.25 a barrel after hitting a 2.5-year high of $71.70 overnight. The key U.S. Treasury 10-year note yield is fetching around 1.5%.
There was no major U.S. economic data released Monday.
Technically, August gold futures bulls still have the overall near-term technical advantage. However, they are fading as a nine-week-old price uptrend on the daily bar chart has been negated. Bulls’ next upside price objective is to produce a close above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,810.70. First resistance is seen at today’s high of $1,879.70 and then at $1,900.00. First support is seen at today’s low of $1,845.70 and then at $1,840.00.
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