Gold, silver set back as chart-based sellers step in

Gold and silver prices are lower in midday U.S. trading Monday, as the shorter-term futures traders are again pressing the short side of the markets to start the trading week, amid a lack of fresh, markets-moving fundamental news. June gold futures were last down $13.40 at $1,731.60 and May Comex silver was last down $0.505 at $24.82 an ounce.

Global stock markets were mostly lower overnight. U.S. stock indexes are pointed slightly weaker at midday, on a routine corrective pullback from recent gains that put the indexes at record highs last week.

Markets did not paying much attention to Federal Reserve Chairman Jerome Powell's comments on the "60 Minutes" TV show Sunday evening, in which has reiterated the U.S. central bank will continue to support the economy until its fully recovered from the pandemic. He said it will "be a while" before the Fed raises interest rates.

Middle East tensions have up-ticked early this week on reports that a major uranium-enrichment facility in Iran was hit by a damaging cyberattack, likely coming from Israel. Major damage was reported. Still, markets showed no significant reaction.

In another sign of rising and possibly problematic price inflation from the world's major economies, reports say China is considering implementing price controls due to rising commodity prices. Reports also say China's central bank wants to tighten lending standards. Speaking of inflation, the U.S. consumer price index report for March is due out Tuesday morning, and will be extra closely scrutinized following last Friday's hotter-than-expected producer price index report.

The key outside markets today see the U.S. dollar index slightly down. Nymex crude oil prices are firmer and trading around $59.65 a barrel. Meantime, the yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.65%.

There was no major U.S. economic released Monday.

Technically, June gold futures prices are so far seeing a routine downside correction from recent gains after prices late last week hit a five-week high. However, the bulls need to step up and show power soon to keep the technical ground they have gained recently. The gold bears still have the overall near-term technical advantage. Bulls' next upside price objective is to produce a close above solid resistance at $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at today's high of $1,746.20 and then at $1,750.00. First support is seen at$1,725.00 and then at last week's low of $1,721.60. Wyckoff's Market Rating: 3.0

p>May silver futures prices are also seeing a corrective pullback from recent gains. The silver bears have the overall near-term technical advantage. Prices are still in a 10-week-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $26.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the March low of $23.74. First resistance is seen at $25.00 and then at today's high of $25.33. Next support is seen at $24.50 and then at $24.00. Wyckoff's Market Rating: 3.5.

May N.Y. copper closed down 320 points at 400.80 cents today. Prices closed nearer the session low today. The copper bulls have the overall near-term technical advantage. However, prices have been trending mildly lower for six weeks. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 420.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the March low of 384.90 cents. First resistance is seen at today's high of 405.90 cents and then at 410.00 cents. First support is seen at today's low of 398.80 cents and then at 395.00 cents. Wyckoff's Market Rating: 6.5.
 

By Jim Wyckoff

For Kitco News

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