(Kitco News) – Gold futures prices are strongly higher in early U.S. trading Monday, on more safe-haven demand, especially from China. Silver prices are modestly up. A weaker U.S. dollar index to start the trading week is also friendly for the gold and silver markets. June gold was last up $81.30 at $3,324.60. May silver prices were last up $0.381 at $32.37.
In overnight news, a Saxo Bank analyst said strong retail demand for gold from Chinese consumers is keeping the yellow metal buoyant despite selling from Western speculators. Such indicates Chinese citizens are very concerned about the health of the Chinese economy and seeking safe-haven gold.
Asian and European stock markets were mixed in overnight trading. U.S. stock indexes are pointed to lower openings today in New York.
This week comes the Federal Reserve’s interest rate decision on Wednesday afternoon. No change in U.S. monetary policy is expected at this week’s FOMC meeting that begins Tuesday morning.
Market watchers are also on alert for signs of a possible U.S./China tariff détente or changes to the looming reciprocal tariffs set to kick in in early July following a three-month delay. President Trump over the weekend said new trade agreements may be announced as early as this week, asserting his personal control over the process. “We’re negotiating with many countries but at the end of this I’ll set my own deals because I set the deal, they don’t set the deal, I set the deal,” he told reporters aboard Air Force One.
The key outside markets today and see the U.S. dollar index lower. Nymex crude oil futures prices are weaker and trading around $57.75 a barrel. OPEC has agreed to raise its collective crude oil production starting in June, reports said. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.306%.
U.S. economic data due for release Monday includes the U.S. services PMI, the ISM report on business services, and the employment trends index.
Technically, June gold futures bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,400.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at last week’s low of $3,209.40. First resistance is seen at $3,350.00 and then at $3,370.00. First support is seen at $3,300.00 and then at the overnight low of $3,243.10. Wyckoff’s Market Rating: 6.5.
May silver futures bulls have the slight overall near-term technical advantage but need to show more power soon to keep it. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $33.69. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen at Friday’s high of $32.675 and then at $33.00. Next support is seen at $32.00 and then at last week’s low of $31.685. Wyckoff’s Market Rating: 5.5.
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Jim Wyckoff has spent over 25 years involved with the stock, financial and commodity markets. He was a financial journalist with the FWN newswire service for many years, including stints as a reporter on the rough-and-tumble commodity futures trading floors in Chicago and New York. As a journalist, he has covered every futures market traded in the U.S., at one time or another.
Jim is the proprietor of the “Jim Wyckoff on the Markets” analytical, educational and trading advisory service. Jim also worked as a technical analyst for Dow Jones Newswires and as the senior market analyst with TraderPlanet.com. Jim is also a consultant with the highly respected “Pro Farmer” agricultural advisory service. Jim was also the head equities analyst at CapitalistEdge.com. He received his degree from Iowa State University in Ames, Iowa, where he studied journalism and economics.
Follow Jim daily on Kitco.com as he provides both AM and PM roundups and a daily Technical Special.
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