Gold, silver power ahead on chart-based buying, short covering
(Kitco News) - Gold and silver prices are solidly higher in midday U.S. trading Thursday, with gold posting a six-week high and silver a three-week high. The near-term technical postures of both metals took a marked turn to the bullish side today. See below for details. Also, a depreciating U.S. dollar on the foreign exchange market and this week's big surge in crude oil prices have given the metals market bulls upside ammunition. June gold futures were last up $30.90 at $1,767.10 and May Comex silver was last up $0.436 at $25.955 an ounce.
Global stock markets were mixed overnight. U.S. stock indexes are higher openings and at or near record highs. The European Stoxx index hit a record high overnight.
The key outside markets today see the U.S. dollar index slightly up. Still, the greenback bulls have faded recently. Nymex crude oil prices are a bit firmer and trading around $63.30 a barrel. Meantime, the yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.618%.
Technically, June gold futures prices hit a six-week high today and saw a bullish upside "breakout" from the recent trading range. The gold bulls and bears are now back on a level overall near-term technical playing field but the bulls have momentum on their side. Bulls' next upside price objective is to produce a close above solid resistance at $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at this week's low of $1,723.20. First resistance is seen at today's high of $1,770.60 and then at $1,775.00. First support is seen at $1,759.40 and then at $1,750.00. Wyckoff's Market Rating: 5.0
May silver futures prices hit a three-week high today. The silver bulls and bears are now on a level overall near-term technical playing field. A 10-week-old downtrend on the daily bar chart has been negated. Silver bulls' next upside price objective is closing prices above solid technical resistance at $27.00 an ounce. The next downside price objective for the bears is closing prices below solid support at this week's low of $24.68. First resistance is seen at today's high of $26.07 and then at $26.50. Next support is seen at today's low of $25.38 and then at $25.00. Wyckoff's Market Rating: 5.0.
May N.Y. copper closed up 840 points at 421.30 cents today. Prices closed near the session high today and hit a six-week high. The copper bulls have the solid overall near-term technical advantage and gained more power 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 April low of 394.35 cents. First resistance is seen at today's high of 422.20 cents and then at 425.00 cents. First support is seen at 415.00 cents and then at today's low of 410.50 cents. Wyckoff's Market Rating: 7.5.