Gold and silver feel the bite of the bear markets on Monday

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(Kitco News) – Gold and silver prices were lower around noon in the United States on Monday, with silver prices hitting their lowest level in three months. Daily bearish positions in major foreign markets cause metal bulls to stand aside to start the trading week as crude oil prices are significantly lower and the US dollar index is firmer. August gold futures fell $ 9.50 last to $ 1,805.70 and September ExCom silver fell $ 0.59 to $ 25.20 per ounce.

Prices for crude oil, the leader in the commodities sector, are down sharply, have hit a five-week low and are trading around $ 67.00 per barrel. A surprising OPEC-plus meeting on Sunday saw the cartel agree to increase its collective crude oil production by about 400,000 barrels per day each month until the end of 2022, according to reports. If crude oil prices have indeed peaked, this is negative for the entire commodities sector, including metals. Meanwhile, the US dollar index hit a 3.5-month high overnight as the index continues its short-term uptrend.

US bond yields are falling on some safe-haven purchases as global equity markets have become a bit volatile. The yield on 10-year US Treasuries is currently 1.255%.

Global stock markets fall for the most part overnight. US stock indices are down at noon. It is starting to appear that the enthusiasm of traders and investors could wane in the middle of the summer, as the new Covid-19 strain increases in parts of the world, including the United States. in the business lexicon the term “stagflation”. This word appeared in the late 1970s amid double-digit inflation and a failed US economy.

Technically, buyers of gold futures have the overall technical advantage in the short term and have reignited an upward price trend on the daily bar chart. However, they need to show new potency early in the week to keep the uptrend going. The Bulls’ next bullish price target is to produce a close above the solid resistance at $ 1,850.00. The bears’ next short term bearish price target is pushing futures prices below the strong technical support at $ 1,775.00. First resistance is seen at the overnight high of $ 1,818.00 and then at $ 1,825.00. First support is seen at today’s low at $ 1,795.00 and then at $ 1,791.00. Wyckoff Market Score: 6.0

The Silver Bears regained the overall short-term technical advantage. The next bullish price target for Silver Bulls is to close September futures prices above strong technical resistance at the July high of $ 26.91 an ounce. The next bearish price target for bears is to close prices below solid support at the March low of $ 23.825. First resistance is seen at $ 25.50, then at the overnight high at $ 25.805. The next support is seen at $ 25.00 and then at $ 24.75. Wyckoff Market Rating: 4.0.