Gold prices experienced a notable decline during midday trading in the U.S. on Monday. Shorter-term futures traders took advantage of recent gains by cashing in profits. Silver prices also saw a slight decrease, although both precious metals remain under the control of bullish technical indicators. June gold dropped by $31.40 to $2,343.50, while July silver decreased by $0.026 to $28.48.
Meanwhile, U.S. stock indexes showed a mixed performance by midday. The start of the trading week appeared relatively quiet in the broader market, with no significant U.S. economic reports released.
Traders and investors are eagerly anticipating key U.S. inflation data scheduled for release later in the week, including the producer price index on Tuesday and the consumer price index on Wednesday. Projections suggest a 0.3% month-on-month increase for the PPI, compared to a 0.2% rise in the previous month’s report, while the CPI is expected to rise by 0.4%, consistent with the March report. The annual CPI reading for April is anticipated to show a 3.6% increase, slightly lower than the 3.8% rise reported in March.
In terms of external factors influencing the markets, the U.S. dollar index showed weakness, while Nymex crude oil prices saw some firmness, trading around $79.00 per barrel. Additionally, the yield on the 10-year U.S. Treasury note stood at 4.479%.
From a technical standpoint, bullish sentiment remains strong for June gold futures in the near term. The next target for bulls is to surpass the significant resistance level at $2,400.00. Conversely, bears are aiming to drive prices below the solid support level at $2,300.00. Initial resistance levels are identified at $2,350.00 and today’s peak of $2,370.80, while support levels are observed at today’s low of $2,337.60 and $2,325.00. According to Wyckoff’s Market Rating, the current score stands at 7.0.
In the near term, July silver futures are under the firm control of bullish technical indicators. The next target for silver bulls is to achieve closing prices exceeding the strong technical resistance observed at last week’s peak of $29.00. On the flip side, bears are aiming for closing prices below the solid support level at $27.00. Initial resistance levels are identified at today’s high of $28.615 and $29.00, while support levels are observed at today’s low of $28.185 and $28.00. According to Wyckoff’s Market Rating, the current score stands at 7.0.
For July N.Y. copper, the overall near-term technical advantage lies with the bulls. Today, copper closed 890 points higher at 475.15 cents, near the session high and reaching a contract peak. The upward trend has been sustained for three months on the daily bar chart. The next objective for copper bulls is to push and close prices above the robust technical resistance at 485.00 cents, whereas bears aim for closing prices below the solid technical support at 450.00 cents. Initial resistance levels are seen at 477.50 cents and 480.00 cents, with support levels at 470.00 cents and 465.00 cents. Wyckoff’s Market Rating reflects a score of 8.5.
