Gold, Silver Prices Rebound As U.S. Dollar Backs Off
(Kitco News) - Gold and silver prices are moderately higher in early U.S. trading Thursday. Short covering in the futures market and perceived bargain hunting in the cash market are featured, as the weaker U.S. dollar index today has invited some buyers back into the metals markets. June Comex gold futures were last up $6.70 an ounce at $1,296.30. July Comex silver was last up $0.155 at $16.56 an ounce.
Gold is flirting with the key psychological level of $1,300.00 again today. A close above that level would suggest a market bottom is in place and that prices can at least trend sideways, if not sideways to higher in the near term.
World stock markets were mixed overnight. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. Buying interest in world stock markets was squelched a bit when U.S. President Trump on Wednesday threatened more tariffs on foreign autos and auto parts.
In overnight news, the European Central Bank has warned that its countries’ bond markets would suffer if the bloc continues to show economic weakness. After an extended period of calm, concerns about the viability of the European Union have arisen again after anti-establishment politicians in Italy are preparing to form a coalition government.
A top North Korean government official said Kim Jong Un may not attend the June summit with Trump in Singapore.
The key “outside markets” today find Nymex crude oil prices weaker on profit taking after hitting a 3.5-year high on Tuesday.
Meantime, the U.S. dollar index is weaker on profit taking after hitting a six-month high on Wednesday.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the quarterly house price index, the monthly house price index, existing home sales and the Kansas City Fed manufacturing survey.
Technically, June gold bears have the overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above what is now solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the December low of $1,247.20. First resistance is seen at $1,300.00 and then at $1,309.00. First support is seen at Wednesday’s low of $1,286.70 and then at this week’s low of $1,281.20. Wyckoff's Market Rating: 3.5
July silver futures bears have the overall near-term technical advantage, but the bulls are starting out the week strong. 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 the May low of $16.07. First resistance is seen at this week’s high of $16.70 and then at the May high of $16.865. Next support is seen at Tuesday’s low of $16.465 and then at this week’s low of $16.28. Wyckoff's Market Rating: 3.5.