Price pullbacks for gold, silver amid scant risk aversion
(Kitco News) - Gold and silver prices are moderately down in early U.S. trading Wednesday. Trader and investor attitudes remain very upbeat at mid-week, which is a negative for the safe-haven metals. However, losses in gold and silver will likely be limited in the near term as both metals' near-term technical postures have improved recently. June gold futures were last down $7.40 at $1,735.60 and May Comex silver was last down $0.257 at $24.97 an ounce.
Global stock markets were flat to narrowly mixed overnight. U.S. stock indexes are pointed toward modestly higher openings when the New York day session begins. The Dow and S&P 500 indexes have hit record highs this week. Traders and investors continue to exhibit a "risk-on" mentality that is boosting the equity markets.
The marketplace did not pay much attention to reports an Iranian-backed ship anchored in the Red Sea off the coast of Yemen was attacked. Many believe the assault came from Israel.
In other news, JP Morgan CEO Jamie Dimon said in his annual letter to his shareholders that the U.S. economy is emerging from the pandemic in strong fashion and that the economic boom could last until 2023. He said a "Goldilocks moment" is coming fast, amid sustained economic growth and non-problematic inflation.
The U.S. economic data highlight at mid-week will be the release of the minutes of the last Federal Reserve Open Market Committee (FOMC) meeting, at 2:00 p.m. EDT.
The key outside markets today see the U.S. dollar index weaker. Nymex crude oil prices are higher and trading around $59.80 a barrel. Meantime, the yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.65%.
Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the international trade report, consumer credit, the global services PMI and the weekly DOE liquid energy stocks report.
Technically, the June gold futures bears have the firm overall near-term technical advantage. However, a price downtrend on the daily chart has stalled out and more price gains in the near term would confirm a bullish double-bottom reversal pattern that would be another chart clue that a market bottom is in place. Bulls' next upside price objective is to produce a close in April futures 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 $1,746.70 and then at $1,750.00. First support is seen at Tuesday's low of $1,728.20 and then at Monday's low of $1,721.60. Wyckoff's Market Rating: 3.5
May silver futures bears 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 this week's high of $25.355 and then at $25.50. Next support is seen at this week's low of $24.66 and then at $24.27. Wyckoff's Market Rating: 3.5.