Gold, silver see mild rebounds on short covering

Gold and silver prices are modestly higher in midday U.S. trading Monday. Short covering from the futures traders is featured following the recent selling pressure in both markets. Activity was muted to start the U.S. holiday-shortened trading week. August gold was last up $4.20 at $1,933.50 and September silver was up $0.11 at $23.13.

Asian and European stock markets were mixed to higher in quieter overnight trading. U.S. stock indexes mixed at midday. The S&P stock index futures hit a 14-month high last Friday. Trading was quieter today as many American traders and investors are taking an extra day off, ahead of the U.S. Independence Day holiday Tuesday when all U.S. markets are closed. Some U.S. markets close early today.

It’s still a busy week for the marketplace as the U.S. employment situation report for June is out Friday. The key non-farm payrolls number is forecast up 240,000 versus a gain of 339,000 in the May report.

U.S. Treasury Secretary Janet Yellen travels to China Thursday for meetings with high-level Chinese officials.

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The key outside markets today see the U.S. dollar index near steady. Nymex crude oil prices are a bit firmer and trading around $71.00 a barrel. Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching around 3.85%.

Technically, August gold futures bears have the overall near-term technical advantage. Prices are in a two-month-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the February low of $1,846.80. First resistance is seen at today’s high of $1,939.90 and then at $1,950.00. First support is seen at today’s low of $1,917.70 and then at $1,900.00. Wyckoff's Market Rating: 3.5.

September silver bears have the overall near-term technical advantage. A choppy, two-month-old price downtrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the June high of $24.835. The next downside price objective for the bears is closing prices below solid support at the March low of $20.425. First resistance is seen at last week’s high of $23.335 and then at $23.50. Next support is seen at today’s low of $22.91 and then at last week’s low of $22.485. Wyckoff's Market Rating: 4.0.

September N.Y. copper closed up 390 points at 379.85 cents today. Prices closed near the session high today on short covering. The copper bears have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the June high of 396.40 cents. The next downside price objective for the bears is closing prices below solid technical support at the May low of 356.50 cents. First resistance is seen at 382.50 cents and then at 385.00 cents. First support is seen at today’s low of 375.95 cents and then at 372.50 cents. Wyckoff's Market Rating: 3.5.

By

Jim Wyckoff

For Kitco News

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