Gold and silver prices dropped sharply early on Monday in U.S. trading. This was because investors were selling to take profits and there were fewer people holding onto their investments for a long time. Also, tensions in the Middle East seemed to be easing, which made people less interested in buying gold and silver, which are considered safe investments during uncertain times. June gold was down $57.50 at $2,356.20, and May silver was down $1.309 at $27.50.
According to SP Angel, a brokerage firm, many gold miners are selling their gold at these high prices, which could stop gold prices from rising even more. They expect a lot of gold to be sold because miners want to make money from the high prices, especially with inflation going up. Recently, gold prices had been going up because more people were trading gold on China’s futures exchanges.
In Asia and Europe, stock prices were mixed but mostly higher overnight. In the U.S., stock prices were expected to go up when trading started in New York.
China’s central bank didn’t change its main interest rates on Monday, which was what most people were expecting. The rates they control, for loans of different lengths, stayed the same.
The U.S. dollar was a bit stronger, and the price of crude oil was steady around $83.00 per barrel. The yield on 10-year U.S. Treasury bonds was 4.64%.
On Monday, there was also some economic data from the U.S. expected to be released, including the Chicago Fed national activity index.
In simpler terms, for gold futures, the buyers are currently in a strong position in the short term. There’s been a consistent uptrend for nine weeks on the daily chart. The goal for the buyers is to make sure that in June, the price of futures goes higher than $2,448.80, which has been a tough level to break through in the past. On the other hand, if the sellers want to take control, they’ll need to push the prices below $2,250.00, which has been a reliable support level. The first challenges for the buyers are at $2,375.00 and $2,400.00, while the first supports are at $2,350.00 and $2,337.00. Overall, the market is rated as 7.5, indicating moderate confidence in its current state.
In simpler terms, for silver, the buyers are in a good position in the short term, but they’re losing a little momentum. Prices have been going up for nine weeks on the daily chart. The goal for the buyers is to get the price of May futures above $30.00, which has been a tough level to break through. If the sellers want to take control, they’ll need to push the prices below $26.00, which has been a reliable support level. The first challenges for the buyers are at $28.00 and $28.25.
