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Gold prices lower as investor risk appetite rising this week

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(Kitco News) - Gold prices are trading lower again and back below $1,700.00 in early U.S. trading Wednesday, amid keener trader/investor risk appetite in the marketplace at mid-week. The recent safe-haven bids that had supported gold and silver markets has evaporated, for the moment. June gold futures were last down $13.20 an ounce at $1,692.30. July Comex silver prices were last down $0.16 at $17.435 an ounce.

Global stock markets were mostly higher in overnight trading. U.S. stock indexes are pointed toward solidly higher openings when the New York day session begins. Traders and investors remain upbeat at mid-week. After two months or more of being mostly quarantined the citizens of major industrialized countries are eager to get back to their pre-Covid-19 ways of life and are seeing light at the end of the tunnel. The global stock markets are trading like they expect the world’s consumers to get back to old spending habits sooner rather than later. Still, tens of millions of workers in the major global economies have been idled by the pandemic-induced closure of businesses. A significant number of lost jobs are gone for good.

Many in the general public still can’t rationalize world stock markets that have recovered so strongly in the face of many businesses that are still closed and up to 30% of countries’ workers are unemployed. One explanation is that the mammoth monetary stimulus programs from the major central banks that have pumped so much money into global financial systems is seeing a lot of that money flowing back into stock markets.

The important outside markets see the U.S. dollar index weaker early today. The greenback bulls are fading this week. Nymex crude oil prices are lower and trading around $34.00 a barrel. The yield on the benchmark U.S. Treasury 10-year note is currently around 0.7%.  

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the weekly Goldman Sachs and Johnson Redbook retail sales reports, the Richmond Fed business survey, and the Federal Reserve’s beige book.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls have the overall near-term technical advantage  but a price uptrend on the daily bar chart is now in jeopardy and the bulls need to show fresh power soon. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at $1,750.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,666.20. First resistance is seen at $1,700.00 and then at the overnight high of $1,708.10. First support is seen at the overnight low of $1,687.10 and then at $1,683.00. Wyckoff's Market Rating: 6.5

Live 24 hours silver chart [ Kitco Inc. ]

July silver futures bulls have the firm overall near-term technical advantage. A bull flag has formed on the daily bar chart. 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 the overnight high of $17.70 and then at $18.00. Next support is seen at Tuesday’s low of $17.37 and then at $17.19. Wyckoff's Market Rating: 7.0.

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.