In the face of negative external market conditions, there is little selling pressure on gold

foreign exchange trading platform- Gold prices weakened and silver fell slightly in midday US trading on Monday (July 22). The two precious metals faced some price pressure from major external markets on the first trading day of the week, with the market tending to be bearish. The dollar index and U.S. Treasury yields rose slightly, crude oil prices fell slightly, and U.S. stock indexes were mostly higher. Spot gold rose $10.90 to $2,388.00. Spot silver fell $0.119 to $29.175.

Markets reacted calmly to the news that US President Joe Biden was withdrawing from the presidential race. Biden's withdrawal came as no surprise given the growing number of Democrats calling on him to "carry the torch" over the past few weeks. Biden is backing Vice President Kamala Harris. Harris appears to have good Democratic support, which seems to have removed some of the uncertainty in the market, which in turn suppressed the need for a safe haven following the news that Biden is not running over the weekend.

The central bank unexpectedly cut interest rates. The key seven-day repo rate fell to 1.7 per cent, the first cut in nearly a year. The People's Bank of China also cut other lending rates.

The yield on the benchmark 10-year Treasury note is currently 4.268%.

As the week progresses, the pace of U.S. economic data releases picks up, with GDP data on Thursday and inflation data in the personal income and spending report on Friday peaking.

(Daily chart of spot gold)

Technically, the spot gold bulls still have a solid overall short-term technical advantage. The bulls' next upside target is to close above the record high of $2,488.40. The bears' next near-term downside target is to push futures prices below the solid technical support level of $2,300.00. The first resistance is at the overnight high of $2414.40, then $2425.00. The first support is at the overnight low of $2385.20, then $2375.00.