(Kitco News) – Gold prices are near steady in early-morning U.S. trading Monday, as the bulls are trying to “right the ship” following the intense selling pressure seen late last week. Working in the precious metals bulls’ favor to start the trading week is a weaker U.S. dollar index and lower U.S. stock index prices. June gold futures were last up $0.40 an ounce at $1,276.10. July Comex silver prices hit another 5.5-month low overnight and were last up $0.012 at $14.40 an ounce.
Gold prices lost around $35.00 last Thursday and Friday, producing near-term technical damage. Bulls need to stabilize their market early this week to avoid a solid, fresh leg down in prices from occurring.
World stock markets were mostly weaker overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins. The U.S.-China trade war drags on, with any agreement between the two largest economies in the world not seen as imminent. This matter will likely continue to drag on world stock markets until it comes to a successful conclusion.
In overnight news, the German Bundesbank expects Germany’s economy to stagnate in the second quarter of this year. Germany’s economy is the workhorse of the European Union.
In other news, Australia’s conservative government won surprisingly in the weekend national elections. And India’s Prime Minister Modi has likely won re-election over the weekend, according to exit polls.
Today’s key “outside markets” see the U.S. dollar index near steady. Meantime, Nymex crude oil prices are also trading around unchanged and just below $63.00 a barrel.
U.S. economic data due Monday’s release is light and includes the Chicago Fed national activity index.
Technically, the gold bears have gained a slight overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at $1,300.00. Bears’ next near-term downside price breakout objective pushes prices below solid technical support at the May low of $1,267.30. First, resistance is seen at $1,280.00 and then at $1,285.00. First, support is seen at the overnight low of $1,273.30 and then at $1,270.00. Wyckoff’s Market Rating: 4.5 July silver futures bears have a solid overall near-term technical advantage. Prices are in a three-month-old downtrend on the daily bar chart.
Silver Bulls’ next upside price breakout objective is closing prices above solid technical resistance at $15.00 an ounce. The bears’ next downside price breakout objective is closing costs below solid support at the November low of $14.175. First resistance is seen at Friday’s high of $14.555 and then at $14.75. Next, support is seen at the overnight low of $14.355 and then at $14.30. Wyckoff’s Market Rating: 2.0.
