Gold gains as bulls step in to buy the dip, keep price uptrend alive

(Kitco News) - Gold prices are higher and near the session high in midday U.S. trading Tuesday. The bulls are doing some perceived bargain hunting after the recent price declines and are keeping alive a fledgling price uptrend on the daily bar chart. A still-wobbly U.S. stock market and elevated crude oil prices are also working in favor of the metals market bulls. August gold futures were last up $10.10 at $1,854.00. July Comex silver futures were last up $0.078 at $22.17 an ounce.

Global stock markets were mixed to weaker overnight. U.S. stock indexes are slightly lower at midday.

In overnight news, Australia’s central bank somewhat surprised the marketplace with a larger-than-expected interest rate increase. The Royal Bank of Australia raised a key interest rate range by 50 to 75 basis points.

U.S. Treasury Secretary Janet Yellen will be grilled by U.S. lawmakers Tuesday and Wednesday as she will testify to Congress on the Biden administration’s budget request and its plans to deal with rising inflation.

Two key data points of the week are the European Central Bank’s regular monetary policy meeting Thursday, at which the central bank is expected to lay out plans for tightening its monetary policy. On Friday the U.S. consumer price index report for May is set for release. The CPI is expected to be up 8.2%, year-on-year, after a rise of 8.3% in April.

The key outside markets today see Nymex crude oil prices higher and trading around $119.50 a barrel. The U.S. dollar index is slightly lower today. The yield on the 10-year U.S. Treasury note is fetching 2.97%.

Technically, August gold futures bears have the overall near-term technical advantage but the bulls are still working on a fledgling price uptrend. However, they need to show more power soon to keep it alive. Bulls' next upside price objective is to produce a close above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at this week’s high of $1,861.20 and then at last week’s high of $1,878.60. First support is seen at today’s low of $1,838.50 and then at last week’s low of $1,830.20. Wyckoff's Market Rating: 4.0

July silver futures bears have the overall near-term technical advantage. However, the bulls are working on a fledgling price uptrend on the daily chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $23.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $21.00. First resistance is seen at this week’s high of $22.565 and then at $23.00. Next support is seen at today’s low of $21.84 and then at last week’s low of $21.41. Wyckoff's Market Rating: 3.5.

July N.Y. copper closed down 180 points at 441.65 cents today. Prices closed nearer the session high today. Prices have backed well down from last Friday’s five-week high. The copper bulls still have the overall near-term technical advantage. A three-week-old price uptrend is in place on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at last week’s high of 457.70 cents. The next downside price objective for the bears is closing prices below solid technical support at last week’s low of 425.90 cents. First resistance is seen at this week’s high of 447.20 cents and then at 450.00 cents. First support is seen at today’s low of 437.05 cents and then at 435.00 cents. Wyckoff's Market Rating: 6.0.