Gold and silver are falling while the dollar bulls are flexing their muscles

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(Kitco News) – Gold and silver prices fell at midday Tuesday in the United States, but are off daily lows. Silver recorded its lowest level in seven weeks today. The rise in the US dollar index, which recorded the highest level in two months today, in addition to the rise in US Treasury yields, led to buyers hiding in the gold and silver market. Chart-based selling has also emerged recently as near-term technical positions deteriorate for both metals. Gold for June was last down $8.60 at $1,968.40, and silver for July was down $0.301 at $23.56.

The Asian and European stock markets diverged overnight. US stock indices are slightly lower at midday. Reports said President Biden and House Speaker McCarthy had productive talks on Monday afternoon about extending the US debt ceiling. The two are scheduled to meet again this week over the matter. US Treasury Secretary Janet Yellen confirmed that the US government may run out of funds by June 1 if a new debt extension agreement is not reached.

The apparent progress in the US debt talks may increase selling pressure on the safe-haven gold and silver markets. Also, recent comments from Fed officials have generally tended to be more hawkish than dovish regarding US monetary policy, which is another bearish element for the metal.

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Major foreign markets today are seeing the US Dollar Index rally and reached a two-month high overnight. Crude oil prices are higher on NYMEX and is trading around $73.50 a barrel. Meanwhile, the benchmark 10-year US Treasury yield is currently at 3.74%.

Technically, the bulls on June gold futures still have the overall technical advantage in the near term but have faded. Prices have been in a downtrend for the past three weeks on the daily bar chart, indicating a near-term market top. The next bullish price target for the bulls is to produce a close above the solid resistance at $2000.00. 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 notice the first resistance at today’s high at $1,975.70 and then this week’s high at $1,984.80. The first support is seen at the May low of $1,954.40 and then at $1,950.00. Wyckoff Market Rating: 6.0

Silver futures prices for the month of July hit a seven-week low today. The Silver Bears have the overall technical advantage in the near term. Prices have been in a downtrend for three weeks 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 notice the first resistance at the high of the day at $23.81, then $24.00. The next support is seen at today’s low of $23.235 and then $23.00. Wyckoff Market Rating: 4.0.

New York copper closed in July down 270 points at 365.80 cents today. Prices closed near the low of the session today and hit a six-month low. The copper bears have a strong 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 385.00 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 370.50 cents, and then at this week’s high at 373.75 cents. The first support appears at today’s low at 362.20 cents, then at 360.00 cents. Wyckoff Market Rating: 3.0.