Gold and silver are under pressure from bearish charts and foreign markets

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(Kitco News) – Gold and silver prices fell moderately at midday on Monday in the US. Both markets are seeing chart-based selling pressure as their near-term technical positions have deteriorated recently. The rise in the US dollar index and the rise in US Treasury yields to start the trading week is also bearish for the precious metals. Gold for June was last down $7.80 at $1,973.90, and silver for July was down $0.27 at $23.79.

There was more “Fed Talk” from a Fed official today. Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, said on CNBC that the US central bank is determined to bring inflation down to about 2% annually. However, he said he is not sure if the Fed will raise interest rates at the next FOMC meeting in June. Overall, it appears that Fed officials, including Chairman Jay Powell, are not quite ready to back down from tightening US monetary policy. If the Fed doesn’t raise interest rates next month, many will be willing to call it a “hawkish pause.” The Fed’s still hawkish bias was bearish for gold and silver while it was bullish for the US dollar.

Asian and European stock markets mostly rose overnight. US stock indices are mixed at midday. Attention is again occupied this week by talks to extend the US debt ceiling, which have not yielded tangible results so far. President Biden and House candidate McCarthy are scheduled to meet on the matter later today. US Treasury Secretary Janet Yellen said in early June that it was a “hard deadline” for the US government that needed to increase its debt limit to avoid defaulting on some of its financial obligations.

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Today major overseas markets are seeing a slight uptick in the US Dollar Index but not much lower than last week’s high in seven weeks. NYMEX Crude Oil prices are slightly higher and trading around $72.00 a barrel. Meanwhile, the benchmark 10-year US Treasury yield is currently at 3.728%.

There were no major US economic data scheduled for release on Monday, but the pace of data release picks up quickly on Tuesday.

Technically, the bulls on June gold futures still have the overall near-term technical advantage but it is fading. Prices are now in an emerging downtrend on the daily bar chart, indicating a near term market top is in place. The next bullish price target for the bulls is to produce a close above the solid resistance at $2,025.00. The bears’ next bearish price target in the near term is pushing futures prices below the strong technical support level at $1,900.00. We see the first resistance at $1,988.80 and then $2,000.00. The first support is seen at the May low of $1,954.40 and then at $1,950.00. Wyckoff Market Rating: 6.0

The bulls on the July silver futures contract have a slight overall technical advantage in the near term. The prices are in an emerging downtrend on the daily bar chart. The next bullish price target for silver bulls is for prices to close above the strong technical resistance at $25.00. The next downtrend price target for the bears is to close the price below the strong support level at $22.00. We see the first resistance at $24.00 and then last week’s high at $24.395. The next support is seen at the May low of $23.485 and then $23.00. Wyckoff Market Rating: 4.5.

New York copper closed in July down 480 points at 368.40 cents today. Prices closed near today’s session low. The Copper Bears have the overall technical advantage in the near term. Prices have been in a downtrend for five 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 395.00 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 today’s high at 373.75 cents and then last week’s high at 377.90 cents. The first support appears at the May low at 365.25 cents and then at 360.00 cents. Wyckoff Market Rating: 3.0.