Make Kitco Your Homepage

Gold, Silver Prices See Tepid Rebounds At Mid-Week

Kitco News

Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here!

(Kitco News) - Gold and silver prices are slightly up in early U.S. trading Wednesday, on weak rebounds following selling pressure that Tuesday drove both metals to four-month lows. Scant risk aversion in the world marketplace and a strong U.S. dollar are still weighing heavy on the safe-haven metals. June gold futures were last up $0.90 an ounce at $1,274.20. May Comex silver was last up $0.29 at $14.82 an ounce.

Asian stock indexes were mostly weaker overnight, while the European equities markets traded near steady. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. The U.S. stock indexes are trending solidly higher and are at or near record and/or multi-month highs. With no major geopolitical hotspots in play at present, focus of traders and investors is on corporate earnings reports, most of which have been upbeat.

In overnight news, the closely watched German Ifo business sentiment index fell in April to 99.2 versus 99.7 in March.

It's quieter this week on the U.S.-China trade war front. Both sides are set to meet again next week. The U.S. is also discussing trade with Japan and other nations. The European Central Bank today declared the U.S. could be the main victim on trade because of its more aggressive stance toward its major trading partners.

Nymex crude prices on Tuesday pushed to a six-month high of $66.60 a barrel, with Brent crude trading above $74.00. Prices are modestly lower today on some profit taking. The other key outside market today finds the U.S. dollar index near steady and not far below this week's multi-month high.

U.S. economic data due for release Wednesday is light and includes the weekly MBA mortgage applications survey and the weekly DOE liquid energy stocks report.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bears have the overall near-term technical advantage. A two-month-old downtrend line is in place on the daily bar chart. Bulls' next upside price objective is to produce a close in June futures above solid resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,250.00. First resistance is seen at this week's high of $1,281.90 and then at $1,285.00. First support is seen at this week's low of $1,267.90 and then at $1,260.00. Wyckoff's Market Rating: 3.5

Live 24 hours silver chart [ Kitco Inc. ]

May silver futures bears have the overall near-term technical advantage. Prices are in a two-month-old downtrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the April high of $15.31 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 $15.00 and then at this week's high of $15.04. Next support is seen at this week's low of $14.70 and then at $14.50. Wyckoff's Market Rating: 3.5.

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.