Gold, silver down amid bearish outside markets; FOMC looms

Gold and silver prices are lower in midday U.S. trading Monday. A trio of bearish outside markets are pressuring the precious metals today: a firmer U.S. dollar index, solidly lower crude oil prices and a rise in U.S. Treasury yields. The marketplace is a bit quieter just ahead of the U.S. central bank monetary policy meeting and key U.S. inflation reports. August gold was last down $7.80 at $1,969.30 and July silver was down $0.37 at $24.03.

The U.S. data point of the week is the FOMC meeting of the Federal Reserve, which begins Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chairman Powell. A majority of the marketplace still thinks the Fed will pause in its interest-rate-tightening cycle. However, a stronger U.S. jobs report last Friday has bolstered those outliers who are thinking the Fed will make another rate hike this week.

Other important U.S. economic reports out this week include the consumer and producer price index reports for May on Tuesday and Wednesday, respectively. The CPI is forecast up 4.0%, year-on-year, while the PPI is seen down 0.1%, month-on-month.

Asian stock markets were mixed overnight and European stock indexes were mostly firmer. U.S. stock indexes are firmer at midday.

The key outside markets today see the U.S. dollar index firmer and erased overnight losses. Nymex crude oil prices are solidly lower and trading around $67.75 a barrel. Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching 3.776%.

Technically, August gold futures bulls have the overall near-term technical advantage amid recent choppy trading. Bulls’ next upside price objective is to produce a close above solid resistance at $2,000.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the May low of $1,949.60. First resistance is seen at last week’s high of $1,987.80 and then at $2,000.00. First support is seen at today’s low of 1,963.10 and then at last week’s low of $1,953.80. Wyckoff’s Market Rating: 6.5

July silver futures prices hit a four-week high last Friday. The silver bulls have the overall near-term technical advantage. 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 the May low of $22.785. First resistance is seen at today’s high of $24.395 and then at $24.75. Next support is seen at $23.75 and then at $23.50. Wyckoff’s Market Rating: 6.0.

July N.Y. copper closed down 355 points at 375.35 cents today. Prices closed near mid-range today after hitting a four-week high last Friday. The copper bears have the overall near-term technical advantage. However, prices are in a fledgling uptrend on the daily bar chart. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 400.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the May low of 354.50 cents. First resistance is seen at 380.00 cents and then at last week’s high of 383.35 cents. First support is seen at today’s low of 373.50 cents and then at last week’s low of 368.60 cents. Wyckoff’s Market Rating: 4.0.