Gold, Silver Stabilize Following This Week's Pressure
(Kitco News) - Gold and silver prices are slightly higher in early U.S. trading Thursday, as the precious metals are trying to stabilize after selling off most of this week. Gold prices hit a four-week low on Wednesday. June Comex gold futures were last up $1.60 an ounce at $1,324.40. May Comex silver was last up $0.008 at $16.51 an ounce.
World stock markets were mostly firmer overnight. U.S. stock indexes are also pointed toward modestly higher openings when the New York day session begins. Upbeat corporate earnings reports recently are working in favor of the stock market bulls today. However, worries about rising inflation are limiting the upside in world stock markets. The marketplace has viewed with trepidation this week the move above 3.0% in U.S. 10-year Treasury note yields.
The European central bank held its regular monetary policy meeting Thursday. No change in policy occurred and none was expected.
The key “outside markets” on Thursday morning see the U.S. dollar index trading slightly up and hitting another 3.5-month high overnight. Meantime, Nymex crude oil prices are firmer and trading just below $69.00 a barrel. Oil bulls have the solid near-term technical advantage, which is a bullish underlying element for the metals markets, as well as other raw commodities.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the advance economic indicators report, the Kansas City Fed manufacturing survey, and durable goods orders.
Technically, June gold bulls still have the overall near-term technical advantage, but have faded and need to show fresh power soon to avoid serious chart damage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,350.00. 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 today’s high of $1,328.00 and then at this week’s high of $1,337.60. First support is seen at this week’s low of $1,320.20 and then at $1,312.40. Wyckoff's Market Rating: 6.0
May silver futures 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 $16.75 and then at $16.89. Next support is seen at $16.40 and then at $16.25. Wyckoff's Market Rating: 5.0.