Gold, silver prices see sharp pop on huge jump in U.S. jobless
(Kitco News) - Gold and silver prices are trading sharply up in midday U.S. trading Thursday and are near session highs after the U.S. government reported a massive increase of 6.6 million in jobless claims in the latest reporting week. June gold futures were last up $44.00 an ounce at $1,635.00. May Comex silver prices were last up $0.611 at $14.595 an ounce.
The big U.S. data point this week will not be Friday’s monthly employment report (usually the most important data point of the month) but instead it was Thursday morning’s weekly jobless claims report. The 6.6 million rise was about double the expected gain of just over 3 million, after rising 3.2 million last week. The weekly claims report further confirms U.S. economy has been severely crippled by the coronavirus outbreak.
Global stock markets were mixed in overnight trading. U.S. stock indexes are solidly higher at midday, following Wednesday’s sharp losses.
The important outside markets today see Nymex crude oil prices sharply higher and trading around $25.20 a barrel, on heavy short covering and perceived bargain hunting after hitting an 18-year low of $19.27 a barrel Monday. The big rally in oil prices today is helping to lift the U.S. stock indexes. There are reports the U.S., Russia and Saudi Arabia are close to agreement on a deal to halt the Saudi-Russia oil-price war. President Trump said an agreement between Saudi Arabia and Russia will be reached soon. Reports also said China will be buying crude oil for its strategic petroleum reserve. China reportedly at present has over 1 billion barrels of empty oil storage capacity, at the same time the U.S. has very little to none. The big rally in oil prices is bullish for the precious metals markets.
The U.S. dollar index is higher at midday and the bulls are having a very good week. When the going gets really, really tough it appears global traders and investors still seek out the greenback. The 10-year U.S. Treasury note yield is trading around 0.6% Thursday, after trading above 1.0% last week. Declining U.S. Treasury yields recently are a sign that U.S. bond traders (arguably the smartest traders in the world) expect more serious markets/economic turmoil on the horizon, including suggesting that most markets have not yet fully priced in the eventual global economic toll the coronavirus sickness will exact.
Technically, June gold futures bulls have the firm overall near-term technical advantage and gained fresh power today. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,675.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,600.00. First resistance is seen at today’s high of $1,637.60 and then at $1,650.00. First support is seen at $1,625.00 and then at $1,613.00. Wyckoff's Market Rating: 7.0
May silver bulls and bears are back on a level overall near-term technical playing field. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $16.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $13.00. First resistance is seen at today’s high of $14.72 and then at $15.00. Next support is seen at this week’s low of $13.895 and then at $13.50. Wyckoff's Market Rating: 5.0.
May N.Y. copper closed up 435 points at 221.80 cents today. Prices closed nearer the session high today. The copper bears still have the overall near-term technical advantage. A bearish pennant pattern has formed on the daily bar chart now. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 230.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the March low of 197.25 cents. First resistance is seen at this week’s high of 224.80 cents and then at 228.00 cents. First support is seen at today’s low of 215.05 cents and then at this week’s low of 213.55 cents. Wyckoff's Market Rating: 3.0.