Gold, silver pausing ahead of FOMC meeting
(Kitco News) - Gold and silver prices are slightly up in two-sided trading at midday Monday, on some more chart consolidation after recent gains. Bulls in both metals are still enjoying near-term price uptrends on the daily charts, suggesting the path of least resistance for prices will remain sideways to higher. June gold futures were last up $0.70 at $1,778.40 and May Comex silver was last up $0.10 at $26.175 an ounce.
The main economic event of the week will be the Federal Reserve’s Open Market Committee (FOMC) meeting that begins Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chair Powell. While no change in U.S. monetary policy is expected, the marketplace will closely scrutinize the Fed’s inflation outlook and any comments on the future path of monetary policy.
Global stock markets were mixed overnight. U.S. stock indexes are slightly up at midday. Traders and investors are weighing the bullish aspect of strengthening global economies that are emerging from the pandemic, but also the bearish aspect of the virus that is still raging in some regions of the global, including a major crisis in India. Also somewhat denting investor enthusiasm is a move by the Biden administration to raise taxes.
The key outside markets today see the U.S. dollar index slightly higher amid a near-term price downtrend in place. Nymex crude oil prices are modestly lower and trading around $61.90 a barrel. Meantime, the yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.57%. For perspective, the German 10-year bond (bund) is presently yielding -0.256% and the U.K. 10-year bond (gilt) is fetching 0.753%.
Technically, June gold futures bulls have the overall near-term technical advantage as prices are in a four-week-old uptrend on the daily bar chart. 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 $1,723.20. First resistance is seen at the April high of $1,898.40 and then at $1,800.00. First support is seen at today’s low of $1,768.20 and then at last week’s low of $1,763.50. Wyckoff's Market Rating: 6.0
May silver futures bulls have the overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart. 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 $24.68. First resistance is seen at $26.50 and then at the April high of $26.73. Next support is seen at today’s low of $25.895 and then at last week’s low of $25.67. Wyckoff's Market Rating: 6.0.
May N.Y. copper closed up 905 points at 442.65 cents today. Prices closed near the session high today and hit a contract and nearly 10-year high. The copper bulls have the strong 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 450.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 410.00 cents. First resistance is seen at 445.00 cents and then at 450.00 cents. First support is seen at today’s low of 432.95 and then at 430.00 cents. Wyckoff's Market Rating: 9.0.