(Kitco News) –
Gold prices are nearly stable at the start of US trading on Monday, with a normal break and some corrective consolidation after prices reached a six-year high last Friday. Silver prices are posting solid gains today after the metal reached a 13-month high on Friday. August gold futures recently fell $ 0.40 an ounce at $ 1,426.30. The Comex silver price last rose $ 0.205 to $ 16.40 per ounce in September.
Gold bulls and silver bulls sit in the driver's seat in midsummer, and a break in short-term uptrends would not be surprising this week.
Asian and European stocks were mixed overnight. The US stock indices point to slightly higher openings when the New York daily session begins. The US indices reached record highs and contract highs last week.
At the beginning of the trading week, geopolitical tensions are higher as it became known that the Iranian military confiscated a British oil tanker near the Strait of Hormuz late Friday, apparently in response to Britain's launch of an Iranian ship several weeks ago has conquered. The confrontation of Iran with the US and Britain is likely to escalate in the coming weeks. Concern about the market is a major US military strike on Iran that could disrupt oil shipping in the Persian Gulf. This would be an uptrend for safe haven metals.
Traders and investors continue to focus on the world's major central banks and their propensity for more accommodative monetary policy amid concerns about a slowdown in global economic growth. The European Central Bank will hold its regular monetary policy meeting on Thursday. Next week, the US Federal Reserve's Open Market Committee (FOMC) will have its monetary policy meeting. Both central banks are expected to ease their monetary policy at the meetings. This is also a bullish scenario for the metals.
The main "foreign markets" today see higher Nymex crude oil prices trading at around $ 56.50 a barrel. In the meantime, the US dollar index is a bit higher today.
US. The economic data due for release on Monday is low and includes the National Activity Index of the Chicago Fed.
Technically speaking, the Gold Bulls have the solid short-term overall technical advantage. A two month uptrend is available on the daily bar chart. The Bulls' next bullish target is to close above the solid resistance at $ 1,500.00 in August. Bears' next short-term downside target is to push August futures prices down to $ 1,400.00 under solid technical support. The first resistance is recorded at today's high of $ 1,430.80 and then at $ 1,442.00. First support is seen at $ 1,420.00 and then at $ 1,410.00. Wyckoff's Market Review: 7.5
September silver futures bulls have the solid short-term overall technical advantage. Silver bulls' next upside is closing the session above solid technical resistance at $ 17.00 an ounce. The next downside goal for the bears is to close the price under solid support at $ 15.625. The first resistance is seen at today's high of $ 16.455 and then at $ 16.50. Next support is seen at the daily low of $ 16,195 and then at $ 16.00. Market valuation of Wyckoff: 7.5.
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