Gold, silver see important follow-through buying Thursday
(Kitco News) - Gold and silver prices are posting good gains on follow-through buying from Wednesday’s solid advances. The gold and silver bulls have gained a bit of upside technical momentum. Importantly, if the bulls can show some more good price strength early next week, such would suggest the markets have put in near-term bottoms. The metals were supported today by bullish outside markets—a lower U.S. dollar index and higher crude oil prices. Bond market yields also pulled back today. June gold futures were last up $11.20 at $1,726.90 and May Comex silver was last up $0.298 at $24.83 an ounce.
Global stock markets were mostly up overnight, on this first trading day of the month and of the second quarter. U.S. stock indexes are also higher at midday today. Trader and investor risk appetite was upbeat Thursday after President Biden on Wednesday unveiled his U.S. economic rescue package, called the American Jobs Plan, at a cost of $2.25 trillion over eight years. The plan mainly addresses upgrading U.S. infrastructure and also includes tax hikes for higher-income Americans and businesses. The marketplace on this day is looking past a worrisome rise in Covid infections in Europe, including France imposing another business lockdown that will last about a month. Covid cases in parts of the U.S. are also on the rise.
U.S. and most European markets are closed Friday for the Good Friday holiday but on that day there is the release of the important U.S. employment situation report from the Labor Department, which is expected to show March non-farm payrolls gaining 675,000 jobs following a rise of 379,000 in February. The unemployment rate is seen at 6.0%.
The key outside markets today see the U.S. dollar index a weaker on a routine corrective pullback after hitting a 4.5-month high on Wednesday. The USDX is still trending solidly higher at present. Nymex crude oil prices are higher and trading around $60.40 a barrel. An OPEC meeting that began today is in focus for the oil market. The cartel is expected to keep in place its present oil-production quotas. Meantime, the yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.68% after hitting a 14-month high of around 1.75% on Tuesday.
Technically, June gold futures bears still have the firm overall near-term technical advantage. However, bulls have gained some momentum and more good buying interest early next week form a bullish double-bottom reversal pattern on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,756.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the March low of $1,676.20. First resistance is seen at this week’s high of $1,731.10 and then at $1,740.00. First support is seen at today’s low of $1,706.40 and then at $1,700.00. Wyckoff's Market Rating: 3.0
May silver futures bears still have the firm overall near-term technical advantage. Prices are in a two-month-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $26.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at $25.00 and then at this week’s high of $25.15. Next support is seen at today’s low of $24.27 and then at $24.00. Wyckoff's Market Rating: 3.0.
May N.Y. copper closed down 45 points at 399.10 cents today. Prices closed nearer the session high today. The copper bulls have the overall near-term technical advantage. However, prices are in a five-week-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 420.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the March low of 384.90 cents. First resistance is seen at this week’s high of 408.25 cents and then at 410.50 cents. First support is seen at last week’s low of 394.20 cents and then at 390.00 cents. Wyckoff's Market Rating: 6.5.