Gold, silver see price bounces; traders look to outside markets
(July 20) Gold and silver prices are higher in early U.S. trading Tuesday, on rebounds from selling pressure Monday. Silver has seen some chart damage inflicted recently. Gold and silver traders are watching the important outside markets early this week, amid a lack of major, markets-moving fundamental news. August gold futures were last up $9.10 at $1,818.20 and September Comex silver was last up $0.061 at $25.205 an ounce.
The U.S. dollar index is a bit weaker after hitting a 3.5-month high on Monday. Meantime, Nymex crude oil prices are firmer on a corrective bounce after dropping sharply and hitting a five-week low on Monday, and are trading around $66.60 a barrel. Commodity market traders need to watch the crude oil market extra closely this week. If crude shows solid follow-through selling pressure from Monday's big losses, such would suggest a market top is in place. That would also be bad news for raw commodity market bulls. The 10-year U.S. Treasury note yield is presently fetching 1.2%.
Global stock markets were mixed overnight. The U.S. stock indexes are pointed toward firmer openings when the New York day session begins, on corrective bounces after suffering sharp losses on Monday. Trader and investor risk appetite is fading at mid-summer, as the newer Delta Covid-19 strain that is surging in some regions of the world, including parts of the U.S., raises concerns about a slowing global economy.
U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, and new residential construction.
The silver bears have the firm overall near-term technical advantage as prices have seen a bearish downside "breakout" from a sideways trading range. Silver bulls' next upside price objective is closing September futures 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 $23.825. First resistance is seen at the overnight high of $25.315 and then at $25.58. Next support is seen at this week's low of $25.035 and then at $25.00.
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