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(Kitco News) – Gold prices are lower in early US trading on Tuesday due to the usual downward correction and some chart consolidation after the decent gains posted on Monday, which really gave the bulls new technical strength. The bearish factor for precious metals this day is the rebound in the US dollar index. June gold futures last fell $ 7 to $ 1,784.80, and July Comex silver fell $ 0.035 to $ 26.925 an ounce.
World stock markets remained virtually unchanged the day before. US stocks are pointing to a narrowly multidirectional opening as the afternoon session begins in New York. With no major geopolitical fires currently underway and the suppression of Covid-19 in most major economies, the focus of traders and investors is largely on upbeat quarterly corporate earnings reports and the still simple monetary policy of the world’s major central banks. These are optimistic elements for the stock markets. So far, markets are not paying much attention to the Covid crisis in India, which continues to grow.
In news overnight, Australia’s central bank left its monetary policy unchanged at its regular meeting on Tuesday. The Royal Bank of Australia has said it does not expect interest rate hikes until at least 2024. The RBA did not portray inflation as a problem.
Key foreign markets are seeing growth in the US dollar index today. Crude oil prices rose on the NYMEX to hit a six-week high of about $ 65.60 a barrel. Meanwhile, the yield on 10-year US Treasuries is currently around 1.621%. For comparison, the 10-year German bond yield is -0.192%, while the UK bond is 0.837%.
US economic data, due on Tuesday, includes Johnson Redbook and Goldman Sachs ‘weekly retail sales, international trade report, IBD / TIPP Economic Optimism Index, and manufacturers’ shipments and inventories.
Technically, bulls in June gold futures regained overall short-term technical advantage and resumed the uptrend on the daily bar chart with good gains on Monday. The next target for the bulls is to close above the solid resistance at $ 1,800.00. The next bearish short-term target is to push futures below solid technical support at last week’s low of $ 1,754.60. The first resistance is seen at overnight highs of $ 1,793.60 followed by $ 1,800.00. First support is seen at this week’s low of $ 1,765.60 and then at last week’s low of $ 1,754.60. Wyckoff Market Rating: 6.0
Silver bulls have an overall short-term technical edge and have resumed their uptrend on the daily chart. The next upside target for the silver bulls is to close July futures above solid technical resistance at $ 28.00 an ounce. The next downside target for bears is to close below the solid support at last week’s low of $ 25,745. The first resistance comes at this week’s high of $ 27.115, followed by $ 27.50. The next support is seen at $ 26.765 and then at $ 26.50. Wyckoff Market Rating: 6.0.
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