Gold, silver sell off on inflation worries
Gold and silver prices are lower near midday Monday. The failed weekend peace talks between the U.S. and Iran have reignited worries about problematic inflation weighing on global demand for gold and silver. June gold was last down $56.00 at $4,731.70. May silver prices were down $2.46 at $74.03.
The key outside markets see Nymex WTI crude solidly higher and trading around $101.50 a barrel. The U.S. dollar index is slightly higher. The yield on the benchmark 10-year U.S. Treasury note is presently 4.35 percent.
Technically, June gold futures bulls’ next upside price objective is to produce a close above solid resistance at $5,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $4,500.00. First resistance is seen at $4,800.00 and then at last week’s high of $4,888.00. First support is seen at $4,700.00 and then at the overnight low of $4,626.00. Wyckoff's Market Rating: 6.0.
May silver futures bulls see their next upside price objective is closing prices above solid technical resistance at $80.00. The next downside price objective for the bears is closing prices below solid support at the March low of $61.21. First resistance is seen at $75.00 and then at last week’s high of $77.80. Next support is seen at $72.50 and then at last week’s low of $69.78. Wyckoff's Market Rating: 5.5.
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