Gold, silver up as USDX weakens, crude oil bounces
(Kitco News) - Gold and silver prices are are solidly up in midday U.S. trading Tuesday, boosted by short covering in the futures market and perceived value buying in the cash market. A rally in the crude oil market after Monday selling pressure and a weaker U.S. dollar index today are bullish "outside market" forces working in favor of the precious metals bulls. Gold and silver see their near-term technical postures also improving a bit recently. June gold futures were last up $16.50 at $1,745.30 and May Comex silver was last up $0.53 at $25.31 an ounce.
Global stock markets were mixed overnight, with Asian shares mostly down and European shares mostly up. U.S. stock indexes are mixed at midday, after recent good gains that pushed the Dow and S&P 500 indexes to record highs this week. The general, over-riding theme in the marketplace at present is one of upbeat trader and investor attitudes, on ideas global economies will rebound strongly the second half of this year as Covid-19 gets tamped down. At least for now, worries about new waves of the pandemic, huge government spending programs producing problematic inflation, and a potentially over-inflated stock market are being brushed aside.
The key outside markets today see the U.S. dollar index weaker on a corrective pullback from recent gains that saw the index hit a five-month high last week. Nymex crude oil prices are solidly higher and trading around $60.00 a barrel, after getting hammered lower Monday due to energy demand worries. Meantime, the yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.7%.
Technically, June gold futures bears still have the overall near-term technical advantage. However, bulls have gained momentum and more good buying interest this week would confirm a bullish double-bottom reversal pattern on the daily bar chart, to suggest a market bottom is in place. 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 $1,700.00. First resistance is seen at $1,750.00 and then at $1,756.00. First support is seen at today's low of $1,728.20 and then at this week's low of $1,721.60. Wyckoff's Market Rating: 3.5
May silver futures bears have the 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 $26.74 an ounce. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at $25.50 and then at $26.00. Next support is seen at $25.00 and then at this week's low of $24.66. Wyckoff's Market Rating: 3.5.
May N.Y. copper closed down 225 points at 411.50 cents today. Prices closed near mid-range today. The copper bulls have the firm overall near-term technical advantage and gained fresh power today. A five-week-old downtrend on the daily bar chart was negated today. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the February high of 437.55 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 416.00 cents and then at 420.00 cents. First support is seen at today's low of 407.15 cents and then at this week's low of 402.40 cents. Wyckoff's Market Rating: 7.0.