Gold, silver up a bit as U.S. debt-limit talks loom

(Kitco News) – Gold and silver prices are modestly higher in quieter midday U.S. dealings Monday. Traders are awaiting fresh fundamental inputs as a busy data week lies ahead, including negotiations aimed at keeping the U.S. government from defaulting on its debt obligations. June gold was last up $3.10 at $2,023.00 and July silver was up $0.121 at $24.275.

Focus this week is on the U.S. debt-limit extension talks between the White House and Congress. Reports said congressional leaders and President Biden will likely meet Tuesday. The U.S. government could run out of money as soon as June 1. U.S. Treasury Secretary Yellen said over the weekend that progress is being made between Democrats and Republicans, in order to avoid a financially catastrophic U.S. government default on its debt obligations.

Global stock markets were mixed to firmer overnight. U.S. stock indexes are mixed at midday.

In overnight news, two gold-mining companies are set to merge, as Newmont Mining is buying out Australia’s Newcrest Mining, to make the biggest gold-mining buyout deal ever and create the largest gold-mining operation in the world.

The key outside markets today see the U.S. dollar index weaker. Nymex crude oil prices are higher and trading around $71.25 a barrel. Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching 3.504%.

Technically, June gold futures bulls still have the solid overall near-term technical advantage. Prices are in a 2.5-month-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the record high of $2,085.40. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,980.90. First resistance is seen at today’s high of $2,027.50 and then at $2,040.00. First support is seen at last week’s low of $2,005.70 and then at $2,000.00. Wyckoff’s Market Rating: 7.5

July silver futures bulls and bears are on a level overall near-term technical playing field but the bulls have faded recently. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the April and May high of $26.435. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at $24.50 and then at $24.735. Next support is seen at last week’s low of $23.91 and then at $23.50. Wyckoff’s Market Rating: 5.0.

July N.Y. copper closed up 160 points at 374.45 cents today. Prices closed near mid-range and saw tepid short covering after hitting a 5.5-month low last Friday. The copper bears have the overall near-term technical advantage. Prices are in a four-week-old downtrend on the daily bar chart. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 400.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 350.00 cents. First resistance is seen at today’s high of 377.90 cents and then at 383.00 cents. First support is seen at 370.00 cents and then at last week’s low of 367.70 cents. Wyckoff’s Market Rating: 3.0.