Gold and silver are slightly higher as US debt reduction talks loom

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(Kitco News) – Gold and silver prices rose slightly in quieter US midday trading on Monday. Traders await fresh fundamental inputs as a data-packed week approaches, including negotiations aimed at preventing the US government from defaulting on its debt obligations. Gold for the month of June was last up $3.10 at $2023.00, and silver in July was up $0.121 at $24.275.

The focus this week is on talks to extend the US debt limit between the White House and Congress. Reports said congressional leaders and President Biden are likely to meet on Tuesday. The US government may run out of funds as soon as June 1st. US Treasury Secretary Yellen said over the weekend that there is progress between Democrats and Republicans, in order to avert a fiscal disaster as the US government defaults on its debt obligations.

Global stock markets were mixed to stronger overnight. US stock indices are mixed at midday.

On the evening news, two gold mining companies are set to merge, with Newmont Mining buying Australia’s Newcrest Mining, to make the largest gold mining purchase ever and create the largest gold mining operation in the world.

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Today the major foreign markets see the US dollar index weaker. Crude oil prices are higher on NYMEX and is trading around $71.25 a barrel. Meanwhile, the benchmark 10-year US Treasury yield is currently at 3.504%.

Technically, the bulls on June gold futures still have a strong technical advantage overall in the near term. The prices are in a 2.5 month old uptrend on the daily bar chart. The next bullish price target for the bulls is to produce a close above the solid resistance at the record high of $2,085.40. Bears’ next bearish price target in the near term is pushing futures prices below strong technical support at $1,980.90. We notice the first resistance at the high of the day at $2,027.50 and then at $2,040.00. The first support appears at last week’s low at $2,005.70 and then $2,000.00. Wyckoff Market Rating: 7.5

The July silver bulls and technicals are generally near term, but the bulls have faded lately. The next bullish price target for silver bulls is to close prices above the strong technical resistance at the April-May high of $26,435. The next downtrend price target for the bears is to close the price below the strong support level at $23.00. We see the first resistance at $24.50, then $24.735. The next support is seen at last week’s low at $23.91 and then $23.50. Wyckoff Market Rating: 5.0.

New York July copper closed down 160 points at 374.45 cents today. Prices closed near the middle of the range and saw tepid yellow coverage after hitting a 5.5-month low last Friday. The Copper Bears have the overall technical advantage in the near term. Prices have been in a downtrend for the past four weeks on the daily bar chart. The next bullish price target for copper bulls is to push prices and close above the strong technical resistance at 400.00 cents. The next downside price target for bears is to close prices below the strong technical support at 350.00 cents. We notice the first resistance at the high of the day at 377.90 cents, then at 383.00 cents. The first support appears at 370.00 cents, then last week’s low at 367.70 cents. Wyckoff Market Rating: 3.0.