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

This week’s focus is on the US debt ceiling extension talks between the White House and Congress. Congressional leaders and President Biden are likely to meet on Tuesday, reports say. The U.S. government could run out of money as early as June 1. US Treasury Secretary Janet Yellen said over the weekend that progress was being made between Democrats and Republicans to avoid a financially devastating US government debt default.

Global stock markets turned bullish overnight. Midday U.S. stock indices were mixed.

In the evening news, two gold mining companies will merge to create the world’s largest gold mining operation as Newmont Mining acquires Australia’s Newcrest Mining, signing the largest gold mining acquisition deal in history reportedly planned.

The US dollar index is expected to fall in today’s major external markets. Nimex crude oil prices rose, trading near $71.25 a barrel. Meanwhile, the benchmark 10-year Treasury yield is currently at 3.504%.

Technically, the June gold futures bulls still hold onto short-term technical advantage overall. On the daily bar chart, the price is trending upward for his first time in 2.5 months. The Bulls’ next upside price target is to create a close above solid resistance at the all-time high of $2,085.40. The Bears’ next short-term downside objective is to push the futures price below the firm technical support of $1,980.90. First resistance is seen at today’s highs at his $2,027.50, after which he is seen at $2,040.00. The first support is last week’s low of $2,005.70, after which he is likely to be at $2,000.00. Wyckoff Market Rating: 7.5

Bulls and bears in July silver futures are broadly even on short-term technical terms, but the bullish trend has faded recently. The next upside target for the silver bull is a close above solid technical resistance at $26.435, the April and May highs. The next downside target for the bears is a close below the solid support at $23.00. First resistance is at $24.50 and then at $24.735. The next support is likely to be at last week’s low of $23.91, followed by $23.50. Wyckoff Market Rating: 5.0.

The New York copper July price rose 160 points today to close at 374.45 cents. The price ended near the mid-range and saw lukewarm short covering after reaching a five-and-a-half-month low last Friday. Copper bears have an overall technical advantage in the short term. In the daily bar chart, the price is trending downward over his four weeks. The next price rally target for the copper bulls is to push the price above solid technical resistance at 400.00 cents to finish. The next downside target for the bears is a close below the solid technical support of 350.00 cents. The first resistance is seen at today’s high of 377.90 cents and then at 383.00 cents. An initial support is expected at 370.00 cents, followed by last week’s low of 367.70 cents. Wyckoff Market Rating: 3.0.