gold

Profit-Taking Hits Gold Prices: Prime Opportunity to Buy More

EDITOR'S NOTES

Gold prices have taken a hit as short-term traders cash in on recent gains, but this dip is a golden opportunity for savvy investors. Despite the decline, gold bulls maintain strong control from a technical standpoint, signaling a resilient market poised for future gains. With inflation data looming and economic uncertainty persisting, now is the perfect time to buy more gold and hedge against volatility. As the price consolidates, those who capitalize on this pullback could reap significant rewards when the market rebounds.

Gold prices are solidly lower in midday U.S. trading Monday. The shorter-term futures traders are taking profits after recent good gains. Silver prices are just slightly down. Both precious metals bulls remain in firm technical control. June gold was last down $31.40 at $2,343.50. July silver was last down $0.026 at $28.48.

U.S. stock indexes are mixed at midday. It’s a quieter start to the trading week for the general marketplace, with no major U.S. economic reports out today.

Traders and investors are awaiting key U.S. inflation data for April out this week—the producer price index on Tuesday and the consumer price index on Wednesday. PPI is seen up 0.3%, month-on-month, compared to a rise of 0.2% in the March report. CPI is seen up 0.4%, compared to the March report showing a rise of 0.4%. The annual CPI April reading is seen up 3.6% compared to up 3.8% in the March report.

The key outside markets today see the U.S. dollar index weaker. Nymex crude oil prices are firmer trading around $79.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is fetching 4.479%.  

 

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Technically, June gold futures bulls still have the firm overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $2,400.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,300.00. First resistance is seen at $2,350.00 and then at today’s high of $2,370.80. First support is seen at today’s low of $2,337.60 and then at $2,325.00. Wyckoff's Market Rating: 7.0.

 

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July silver futures bulls have the firm overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at last week’s high of $29.00. The next downside price objective for the bears is closing prices below solid support at $27.00. First resistance is seen at today’s high of $28.615 and then at $29.00. Next support is seen at today’s low of $28.185 and then at $28.00. Wyckoff's Market Rating: 7.0.

July N.Y. copper closed up 890 points at 475.15 cents today. Prices closed near the session high today and hit a contract high. The copper bulls have the solid 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 485.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 450.00 cents. First resistance is seen at 477.50 cents and then at 480.00 cents. First support is seen at 470.00 cents and then at 465.00 cents. Wyckoff's Market Rating: 8.5.

This article originally appeared on Kitco News

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