Gold, Silver Stable Despite Uptick In Risk Appetite
(Kitco News) - Gold and silver prices markets have not strayed far from unchanged price levels so far Tuesday. The bulls are impressed with the resilience of their safe-haven metals, in the face of keener risk appetite in the marketplace the past two days. A weaker U.S. dollar index so far this week is working in favor of the precious metals bulls. June Comex gold futures were last up $1.10 an ounce at $1,341.30. May Comex silver was last up $0.006 at $16.535 an ounce.
World stock markets were mostly higher overnight. U.S. stock indexes are also pointed toward higher openings when the New York day session begins. The solid gains in world stock indexes so far this week are an indication of little risk aversion among traders and investors.
The U.S.-China trade tensions have significantly eased early this week. Trump administration officials said on Sunday and Monday that trade sanctions against China are not imminent and there is time to work out a solution to the matter. China’s Premiere Xi Jinping said today he wants a more open Chinese economy and pledged to do a better job of protecting intellectual property.
News that the U.S. has sanctioned Russian oligarchs and the metals firm United Co. Rusal has boosted aluminum, copper and palladium prices early this week. Rusal is the world’s second-largest aluminum producer.
The key “outside markets” on Tuesday morning see the U.S. dollar index lower. The greenback is seeing a corrective pullback so far this week after hitting a five-week high last Friday. Meantime, Nymex crude oil prices are higher and trading just below $65.00 a barrel. Crude is boosted by the easing of U.S.-China trade tensions and by the missile strikes against Syria this week.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and Goldman Sachs retail sales reports, the NFIB small business index, the producer price index, and monthly wholesale trade.
Technically, June gold bulls have the overall near-term technical advantage amid recent choppy trading. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the March high of $1,362.60. 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 $1,348.00 and then at $1,352.50. First support is seen at today’s low of $1,334.20 and then at this week’s low of $1,320.10. Wyckoff's Market Rating: 6.0
May silver futures bears have the slight overall near-term technical advantage amid recent choppy trading. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at last week’s high of $16.68 and then at $16.895. Next support is seen at this week’s low of $16.295 and then at last week’s low of $16.15. Wyckoff's Market Rating: 4.5.