(Kitco News) - Gold prices are near steady in midday U.S. trading Tuesday, after scoring a five-month high overnight. Some mild profit taking was offset by bullish outside markets to start the U.S. trading week and the month of June—a lower U.S. dollar index and higher crude oil prices. The technical postures for both metals remain fully bullish amid price uptrends firmly in place on the daily bar charts. August gold futures were last down $0.10 at $1,903.90 and July Comex silver was last up $0.116 at $28.13 an ounce.
Gold prices are also being supported as traders seek out the metal has a hedge against rising inflationary pressures. Reports said gold exchange traded funds (ETF’s) have seen more money flow into them the past few weeks.
Global stock markets were mostly firmer overnight. U.S. stock indexes are mixed at midday. Trader and investor risk appetite remains keener to start the month of June, amid notions the Federal Reserve may have been right in its proclamations that rising inflation will only be transitory.
Bloomberg reported hedge-fund managers have reduced their holdings in 20 out of 23 commodities, due in part to recent milder and wetter weather in the U.S. that is raising the prospects for larger harvests of grains. China’s government’s recent remarks on futures markets speculation, along with new regulations limiting the sale of futures to individual investors, have also taken some of the bullish fervor out of the raw commodity sector.
The key outside markets today see the U.S. dollar index weaker and not far above last week’s nearly five-month low. Nymex crude oil prices are solidly higher and hit a 2.5-year high Monday, trading around $67.75 a barrel. An OPEC meeting Tuesday is in focus for oil traders. The cartel is expected to slightly increase its collective production. The yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.62%.
![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 solid overall near-term technical advantage. A two-month-old price uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the January high of $1,971.50. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,850.00. First resistance is seen at today’s high of $1,919.20 and then at $1,925.00. First support is seen at today’s low of $1,894.50 and then at last Friday’s low of $1,884.30. Wyckoff's Market Rating: 7.5
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
July silver futures bulls have the solid overall near-term technical advantage. A two-month-old uptrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the February high of $30.015 an ounce. The next downside price objective for the bears is closing prices below solid support at $26.78. First resistance is seen at $28.50 and then at today’s high of $28.71. Next support is seen at last Friday’s low of $27.48 and then at $27.265. Wyckoff's Market Rating: 7.0.
July N.Y. copper closed down 300 points at 464.75 cents today. Prices closed near the session low today. The copper bulls have the solid overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the May high of 488.80 cents. The next downside price objective for the bears is closing prices below solid technical support at 437.00 cents. First resistance is seen at today’s high of 470.70 cents and then at 475.00 cents. First support is seen at 459.25 cents and then at 455.00 cents. Wyckoff's Market Rating: 7.5.
