Gold Prices Decline as Short-Term Traders Take Profits
Gold prices are solidly lower in midday U.S. trading Monday as shorter-term futures traders take profits after recent gains. Despite the decline, precious metals bulls maintain firm technical control. June gold was last down $31.40 at $2,343.50, while July silver was last down $0.026 at $28.48.
Market Overview
U.S. stock indexes are mixed at midday, with a quieter start to the trading week as no major U.S. economic reports are released today.
Key Economic Data to Watch
Traders and investors are eagerly awaiting key U.S. inflation data for April, with the producer price index expected on Tuesday and the consumer price index on Wednesday. The annual CPI April reading is anticipated to be up 3.6% compared to the March report.
Outside Markets and Technical Analysis
The U.S. dollar index is weaker, while Nymex crude oil prices are firmer around $79.00 a barrel. The 10-year U.S. Treasury note is yielding 4.479%.
Technically, June gold futures bulls still have the firm overall near-term technical advantage. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,300.00. The key resistance level remains at $2,400.00.
July silver futures bulls also have the firm overall near-term technical advantage, with their next upside price objective at $29.00. For copper, prices are in a three-month uptrend, with solid resistance at 485.00 cents.
Insight on Copper Market
While gold and silver prices face some downward pressure, the copper market remains strong, with July N.Y. copper hitting a contract high. Copper bulls hold the overall near-term technical advantage, continuing in an uptrend on the daily bar chart.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only, and it is not a solicitation to make any exchange in commodities, securities, or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/or damages arising from the use of this publication.
Additional insight on the copper market showcases the strength in that sector despite the decline in gold and silver prices, indicating a diversified outlook for investors. By including an overview of the copper market, readers gain a more comprehensive understanding of the overall metals landscape and potential investment opportunities.
