Gold, silver gain as charts remain fully bullish
(Kitco News) - Gold and silver prices are trading higher in midday action Tuesday. Some earlier, normal chart consolidation and pausing after recent good gains saw buyers step right back in amid strongly bullish technical postures for both metals. June gold futures were last up $9.40 an ounce at $1,743.80. July Comex silver prices were last up $0.417 at $17.885 an ounce.
Global stock markets were mostly firmer in overnight trading. U.S. stock indexes are mixed in midday trading, on a pause after the stock indexes rallied sharply Monday on positive early results for a Covid-19 vaccine. Many in the marketplace are speculating it’s going to take a proven vaccine to bring the global economy completely back to life and get humans back to mostly normal day-to-day matters. Still, early this week finds trader and investor risk appetite more robust, also due in part to a sharp rally in crude oil prices recently.
Federal Reserve Chairman Jerome Powell and U.S. Treasury Secretary Steven Mnuchin appeared via videoconference before the Senate Banking Committee today, discussing the U.S. emergency lending programs Congress is implementing amid the U.S. economic crisis. Both officials delivered upbeat messages and said there is more the government can do for the economy, should the need arise.
The important outside markets see Nymex crude oil futures near steady today and hitting a two-month high overnight, presently trading around $31.75 a barrel in the June contract, which expires today. Many were predicting the June futures contract would expire the way the May contract did—in negative territory. The U.S. dollar index is lower again today as the bulls are fading this week. The yield on the benchmark U.S. Treasury 10-year note is currently around 0.7%.
Technically, June gold futures bulls have the solid overall near-term technical advantage as prices are not that far from last month’s multi-year high. Gold bulls' next upside near-term price objective is to produce a close above solid technical resistance at the April high of $1,788.80. Bears' next near-term downside price objective is pushing prices below solid technical support at $1,666.20. First resistance is seen at today’s high of $1,750.00 and then at this week’s high of $1,775.80. First support is seen at today’s low of $1,727.20 and then at $1,716.00. Wyckoff's Market Rating: 7.5
July silver futures bulls have the solid overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $18.00 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 $18.00 and then at $18.25. Next support is seen at today’s low of $17.50 and then at today’s low of $17.34. Wyckoff's Market Rating: 7.5.
July N.Y. copper closed up 115 points at 241.55 cents today. Prices closed near mid-range and hit a two-month high today. The copper bulls have the overall near-term technical advantage. Prices are in a two-month-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 250.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 225.00 cents. First resistance is seen at today’s high of 243.85 cents and then at 245.00 cents. First support is seen at 240.00 cents and then at 235.00 cents. Wyckoff's Market Rating: 6.0.