Gold price near steady as weaker USDX offset by firmer equities
(Kitco News) - Gold and silver prices are trading not far from unchanged levels in early U.S. trading Wednesday. The precious metals at mid-week are experiencing the crosscurrents of a weaker U.S. dollar index that is supportive but higher U.S. stock indexes that are bearish. June gold futures were last down $1.90 at $1,745.80 and May Comex silver was last up $0.014 at $25.44 an ounce.
Global stock markets were mixed overnight. U.S. stock indexes are pointed toward mixed to firmer openings when the New York day session begins. Volatility in stock markets remains low, which is favoring the bulls. Also, easy money from the major central banks, government stimulus programs and notions economies are set to spring out of the Covid pandemic in strong fashion are all fueling the record-setting bull run in equities. In focus today will be U.S. corporate earnings reports.
The key outside markets today see the U.S. dollar index slightly down. The greenback bulls have faded recently. Nymex crude oil prices are firmer and trading around $61.15 a barrel. Oil prices are trading in a sideways and choppy fashion. Meantime, the yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.632%. For perspective the German 10-year bund yield is presently minus 0.295% and the 10-year U.K. gilt yield is trading at 0.774%.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, import and export prices and the weekly DOE liquid energy stocks report. Several Federal Reserve officials, including Chairman Powell, are set to give speeches today.
Technically, the June gold futures bears have the 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 $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at the overnight high of $1,750.70 and then at the April high of $1,759.40. First support is seen at the overnight low of $1,741.10 and then at $1,730.00. Wyckoff's Market Rating: 3.0
May silver futures bears have the overall near-term technical advantage. Prices are in a nine-week-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 the March low of $23.74. First resistance is seen at last week’s high of $25.675 and then at $26.00. Next support is seen at $25.00 and then at this week’s low of $24.68. Wyckoff's Market Rating: 3.5.