Gold, silver prices pause after recent solid gains
(Kitco News) - Gold and silver prices are trading near steady in early action Tuesday, on some normal chart consolidation and pausing after recent good gains. Less anxiety in the marketplace so far this week is working against the safe-haven metals, but not in a strong fashion. June gold futures were last up $1.30 an ounce at $1,735.80. July Comex silver prices were last up $0.017 at $17.485 an ounce.
Global stock markets were mostly firmer in overnight trading. U.S. stock indexes are pointed toward weaker openings when the New York day session begins. The U.S. 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 will appear via videoconference before the Senate Banking Committee today, discussing the U.S. emergency lending programs Congress is implementing amid the U.S. economic crisis.
The important outside markets see Nymex crude oil futures higher early today and hitting a two-month high overnight, trading around $32.25 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 early today. The yield on the benchmark U.S. Treasury 10-year note is currently around 0.7%.
U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, and new residential construction.
Technically, the gold bulls have the solid overall near-term technical advantage amid an uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at the April high of $1,788.80. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,666.20. First resistance is seen at $1,750.00 and then at $1,764.20. First support is seen at the overnight low of $1,727.20 and then at $1,716.00. Wyckoff's Market Rating: 7.0
July silver futures bulls have the solid overall near-term technical advantage with the recent big gains. Silver bulls' next upside price objective is closing prices above solid technical resistance at the February high of $19.07 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.50. First resistance is seen at $17.75 and then at $18.00. Next support is seen at Monday’s low of $17.125 and then at $17.00. Wyckoff's Market Rating: 7.0.