Gold, silver see price gains amid slumping greenback, rising oil
(Kitco News) - Gold and silver prices are higher in early U.S. trading Thursday, with gold posting solid gains. 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 some upside ammunition. June gold futures were last up $15.20 at $1,751.60 and May Comex silver was last up $0.176 at $25.70 an ounce.
Global stock markets were mixed overnight. U.S. stock indexes are pointed toward higher openings and at or near record highs when the New York day session begins. The European Stoxx index hit a record high overnight. It will be a busy day for U.S. corporate earnings reports. The U.S. data points of the day will be the weekly jobless claims report and retail sales.
Reports say the Biden administration is poised to levy sanctions on Russia in retaliation for alleged misconduct including the SolarWinds hack and efforts to disrupt the U.S. elections. The Russian ruble and Russian bonds sank on the news. Reports also say Russia is building up its army on the Ukraine border.
The key outside markets today see the U.S. dollar index slightly down. The greenback bulls have faded recently. Nymex crude oil prices are weaker on a corrective pullback from Wednesday’s sharp gains and trading around $62.75 a barrel. Meantime, the yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.618%.
It’s a very busy day for U.S. economic data released Thursday, including the weekly jobless claims report, the Empire State manufacturing survey, the Philadelphia Fed business survey, retail sales, industrial production and capacity utilization, the NAHB housing market index, manufacturing and trade inventories, and Treasury international capital data.
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 better suggest 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 April high of $1,759.40 and then at $1,775.00. First support is seen at the overnight low of $1,734.40 and then at this week’s low of $1,723.20. Wyckoff's Market Rating: 3.5
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 $25.85 and then at $26.00. Next support is seen at Wednesday’s low of $25.235 and then at $25.00. Wyckoff's Market Rating: 3.5.