Gold, silver pressured by bearish charts, outside markets

Gold and silver prices are moderately lower in midday U.S. trading Monday. The two markets are seeing pressure on chart-based selling as their near-term technical postures have deteriorated recently. A higher U.S. dollar index and a rise in U.S. Treasury yields to start the trading week are also bearish for the precious metals. June gold was last down $7.80 at $1,973.90 and July silver was down $0.27 at $23.79.

There was some more “Fed speak” from a Federal Reserve official today. Minneapolis Fed President Neel Kashkari said on CNBC that the U.S. central bank is determined to bring inflation down to around 2% annually. However, he said he was unsure if the Fed would raise interest rates at its next FOMC meeting in June. All in all, it appears Fed officials, including Chairman Jay Powell, are not quite ready to back off on U.S. monetary policy tightening. If the Fed does not raise rates next month, many are prepared to call it a “hawkish pause.”  The Fed’s still-hawkish lean has been bearish for gold and silver and bullish for the U.S. dollar.

Asian and European stock markets were mostly higher overnight. U.S. stock indexes are mixed at midday. In focus again this week are the U.S. debt-ceiling extension talks that have so far produced no concrete results. President Biden and House leaker McCarthy are scheduled to meet on the matter later today. U.S. Treasury Secretary Janet Yellen said early June is a “hard deadline” for the U.S. government needing its debt limit increased in order to avoid defaulting on some of its financial obligations.

outside markets today see the U.S. dollar index modestly up but not far below last week’s seven-week high. Nymex crude oil prices are slightly up and trading around $72.00 a barrel. Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching 3.728%.

There was no major U.S. economic data due for release Monday, but the data release pace picks up fast on Tuesday.

Technically, June gold futures bulls still have the overall near-term technical advantage but are fading. Prices are now in a fledgling downtrend on the daily bar chart, to suggest a near-term market top is in place. Bulls’ next upside price objective is to produce a close above solid resistance at $2,025.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at $1,988.80 and then at $2,000.00. First support is seen at the May low of $1,954.40 and then at $1,950.00. Wyckoff’s Market Rating: 6.0

July silver futures bears have the slight overall near-term technical advantage. Prices are in a fledgling downtrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at $24.00 and then at last week’s high of $24.395. Next support is seen at the May low of $23.485 and then at $23.00. Wyckoff’s Market Rating: 4.5.

July N.Y. copper closed down 480 points at 368.40 cents today. Prices closed nearer the session low today. The copper bears have the overall near-term technical advantage. Prices are in a five-week-old downtrend on the daily bar chart. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 395.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 350.00 cents. First resistance is seen at today’s high of 373.75 cents and then at last week’s high of 377.90 cents. First support is seen at the May low of 365.25 cents and then at 360.00 cents. Wyckoff’s Market Rating: 3.0.