Gold, silver lose daily gains amid higher USDX, bond yields
Gold, silver lose daily gains amid higher USDX, bond yields
Date: 02/07/2021
Jim Wyckoff Thursday July 01, 2021 12:41
(Kitco News) – Gold and silver prices steady to slightly weaker in midday U.S. trading Thursday. Earlier daily gains in the metals were eroded by the close, in part due to the U.S. dollar index today hitting a 2.5-month high and as U.S. Treasury yields ticked back up. Bearish near-term technical charts and a lack of risk aversion in the marketplace as the second half of 2021 begins also worked against the safe-haven metals today. August gold futures were last down $0.50 at $1,770.90 and September Comex silver was last down $0.134 at $26.06 an ounce.
Global stock markets were mixed to weaker overnight. The U.S. stock indexes are mixed at midday after the S&P and Nasdaq indexes this week hit record highs. Lazy summertime trading continues in the world equity markets, amid no major geopolitical flare-ups and generally upbeat trader and investor attitudes. Traders and investors are so far not paying much attention to the delta strain of the Covid-19 virus that is becoming more problematic in Asian countries and other regions of the world.
Traders are awaiting Friday morning’s employment situation report for June from the Labor Department—arguably the most important U.S. economic data point of the month. The key non-farm payrolls number is forecast to come in at up 700,000 compared to a rise of 559,000 in May. The unemployment rate is seen at 5.6% versus 5.8% in May.
The key outside markets today see the U.S. dollar index slightly higher and hitting a 2.5-month high. Nymex crude oil futures are higher, trading around $75.05 a barrel and hit a 2.5-year high of $76.22 today. The yield on the benchmark U.S. Treasury 10-year note is presently fetching 1.5%.
Technically, the gold bears have the overall near-term technical advantage. A four-week-old price downtrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at today’s high of $1,783.40 and then at $1,791.00. First support is seen at today’s low of $1,765.90 and then at this week’s low of $1,750.10. Wyckoff’s Market Rating: 3.5
The silver bears have the overall near-term technical advantage. A five-week-old price downtrend is in place on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $27.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at today’s high of $26.525 and then at $26.75. Next support is seen at $26.00 and then at this week’s low of $25.58. Wyckoff’s Market Rating: 3.5.
September N.Y. copper closed down 350 points at 425.40 cents today. Prices closed near the session low today. The copper bulls and bears are on a level overall near-term technical playing field. A six-week-old downtrend is in place on the daily bar chart. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 450.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 400.00 cents. First resistance is seen at last week’s high of 433.55 cents and then at 435.00 cents. First support is seen at this week’s low of 420.30 cents and then at the June low of 409.40 cents. Wyckoff’s Market Rating: 5.0.
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