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Gold Prices Rally Amid Bullish Outside Markets

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(Kitco News) - Gold prices are moderately higher in early U.S. trading Monday. The metals are also supported early this week by a weaker U.S. dollar index and higher crude oil prices that scored a five-month high overnight. June gold futures were last up $7.90 an ounce at $1,303.50. May Comex silver was last up $0.089 at $15.175 an ounce.

Asian and European stock indexes were mixed to slightly weaker in quieter trading overnight. U.S. stock indexes are pointed toward modestly lower openings when the New York day session begins.

There are no major geopolitical matters on the front burner of the marketplace early this week. U.S. corporate earnings reports are coming out this week. The Brexit saga continues to play out but is not impacting worldwide markets. Trader and investor attitudes are still generally upbeat, which is bullish for the world stock markets and still a bearish element for the safe-haven metals.

U.S. economic reports due for release Monday include manufacturers’ shipments and inventories and the employment trends index. The data pace picks up as the week progresses, including the FOMC minutes released on Wednesday afternoon.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls have the overall near-term technical advantage. Traders are eyeing a bearish head-and-shoulders top reversal pattern on the daily bar chart that has formed the past couple months. A downtrend line is also in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at the March high of $1,330.80. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at last week’s low of $1,284.90. First resistance is seen at $1,305.00 and then at $1,310.00. First support is seen at the overnight low of $1,295.50 and then at $1,290.00. Wyckoff's Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

May silver futures bears have the overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the March high of $15.65 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.50. First resistance is seen at last week’s high of $15.19 and then at 15.315. Next support is seen at $15.00 and then at last week’s low of $14.86. Wyckoff's Market Rating: 4.0.

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.