(Kitco News) - Gold prices are moderately lower in midday U.S. trading Monday, but well up from sharp, early losses. On this day traders appear more focused on the bearish prospects of reduced consumer demand for precious metals due to hobbled economies, than on their safe-haven aspects. August gold futures were last down $10.30 an ounce at $1,727.00. July Comex silver prices were last down $0.092 at $17.39 an ounce.
Global stock markets were also mostly down in overnight trading. Traders and investors are risk averse to start the work week, as there are growing signs that the Covid-19 pandemic is making a resurgence. Reports said parts of Beijing are on lockdown again, with cases in some U.S. states also on the rise as businesses reopen and American citizens become more lax on social distancing. Reported cases in the U.S. have now risen above 2 million.
There are also growing notions that the global stock market rebounds have come too far, too fast, given the actual economic conditions in the major industrialized countries at present. The general and even many in the investing public are asking, “How could the Nasdaq stock index hit a record high last week when U.S. unemployment has surged to around 15% and much of the economy remains crippled?”
The U.S. economic highlight of the week will be Fed Chairman Jerome Powell’s two days of congressional testimony on Tuesday and Wednesday for his semi-annual economic report to Congress. He may provide more clarity on the Fed’s bond buying and other monetary policy moves. Traders will monitor to see if his comments expand on his sober assessment of the U.S. economy last week.
The important outside markets early today see the U.S. dollar index solidly lower. The greenback remains in a steep downtrend. Meantime, Nymex crude oil prices are firmer and trading around $36.50 a barrel. The yield on the benchmark U.S. Treasury 10-year note is currently around the 0.68% level.
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, August gold futures bulls have the firm overall near-term technical advantage but trading has returned to a choppy and sideways pattern at higher levels. Gold bulls' next upside near-term price objective is to produce a close above solid technical resistance at $1,761.00. Bears' next near-term downside price objective is pushing prices below solid technical support at $1,700.00. First resistance is seen at today’s high of $1,743.80 and then at $1,750.00. First support is seen at today’s low of $1,706.20 and then at $1,700.00. Wyckoff's Market Rating: 7.0
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
July silver futures prices hit a three-week low today. The silver bulls still have the overall near-term technical advantage but have faded recently and need to show fresh power soon. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the February high of $19.075 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.50. First resistance is seen at today’s high of $17.63 and then at Friday’s high of $17.87. Next support is seen at $17.00 and then at $16.75. Wyckoff's Market Rating: 6.5.
July N.Y. copper closed down 335 points at 256.75 cents today. Prices closed near mid-range today. The copper bulls still have the firm overall near-term technical advantage. Prices are in a three-month-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the June high of 270.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 240.00 cents. First resistance is seen at today’s high of 260.15 cents and then at Friday’s high of 262.30 cents. First support is seen at today’s low of 253.75 cents and then at 250.00 cents. Wyckoff's Market Rating: 6.5.
