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Gold, Silver Bounce Amid Weaker U.S. Dollar, Equities

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(Kitco News) - Gold and silver prices were higher in early-afternoon U.S. trading Tuesday, on rebounds following recent selling pressure. A weaker U.S. dollar index on this day and a sell-off in the U.S. stock market worked in favor of the precious metals bulls today. June Comex gold futures were last up $9.70 an ounce at $1,333.30. May Comex silver was last up $0.128 at $16.715 an ounce.

The U.S. stock market bulls may have been spooked a bit today as U.S. Treasury 10-year note yields hit a four-year high of 3%. Such hints at rising inflation, but not yet problematic. Still, hard assets (metals, commodities) perform better than paper assets (stocks, bonds) during time of rising inflation that could become worrisome at some point, and possibly sooner than most would reckon.

U.S. President Trump and French President Macron met today in Washington, D.C., to discuss whether to continue the Iran nuclear deal reached in 2015, or to pull out of it and reinstate sanctions on Iran. The deal is up for renewal in early May.

The key “outside markets” on Tuesday saw the U.S. dollar index trading modestly lower after hitting a more-than-three-month high overnight. Meantime, Nymex crude oil prices are near steady at midday and trading just below $69.00 a barrel. Oil prices are not far below last week’s a 3.5-year high.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls have the overall near-term technical advantage but trading remains choppy. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the January high of $1,375.50. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the March low of $1,309.30. First resistance is seen at this week’s high of $1,337.60 and then at $1,345.00. First support is seen at the April low of $1,322.60 and then at $1,312.40. Wyckoff's Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls and bears are on a level overall near-term technical playing field. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the April high of $17.36 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the March low of $16.10. First resistance is seen at $16.89 and then at $17.00. Next support is seen at today’s low of $16.53 and then at $16.35. Wyckoff's Market Rating: 5.0.

May N.Y. copper closed up 305 points at 314.10 cents today. Prices closed near mid-range. The copper bulls have the overall near-term technical advantage. A four-week-old uptrend is in place on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 320.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 300.00 cents. First resistance is seen at today’s high of 311.75 cents and then at the April high of 319.55 cents. First support is seen at 312.00 cents and then at 310.00 cents. Wyckoff's Market Rating: 6.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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