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Gold, silver see good price gains on bullish outside markets

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(Kitco News) - Gold and silver prices are solidly up in early U.S. trading Monday, on some perceived bargain hunting and amid bullish outside market forces that include a weaker U.S. dollar index and slightly firmer crude oil prices. The gold and silver bulls have regained the slight near-term technical advantage. June gold futures were last up $17.90 at $1,785.60 and July Comex silver was last up $0.652 at $26.53 an ounce.

Global stock markets were mixed overnight, with Asian shares mostly weaker and European shares mostly firmer. U.S. stock indexes are pointed toward higher openings when the New York day session begins. U.S. traders and investors are upbeat to start the trading week, amid recent economic data that generally depicts strengthening U.S. business activity, and a drop in Covid-19 cases that suggests the pandemic is finally loosening its grip on the world’s largest economy.

There was also some upbeat news coming out of the Euro zone Monday. The region’s April manufacturing purchasing managers index (PMI) came in at 62.9 following a March reading of 62.5. A number above 50.0 suggests growth in the sector.

The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are slightly up and trading around $64.00 a barrel. Meantime, the yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.646%.   

It’s a busy day for U.S. economic data Monday, including the U.S. manufacturing purchasing managers index (PMI), the ISM report on business manufacturing, the global manufacturing PMI, construction spending and domestic auto industry sales. Federal Reserve Chairman Jerome Powell is also slated to give a speech this afternoon.

Live 24 hours gold chart [Kitco Inc.]

Technically, June gold futures bulls and bears are on a level overall near-term technical playing field amid recent choppy trading. 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 last week’s high of $1,789.90 and then at $1,800.00. First support is seen at the overnight low of $1,765.60 and then at last week’s low of $1,754.60. Wyckoff's Market Rating: 5.0

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls have the slight overall near-term technical advantage. Silver bulls' next upside price objective is closing July futures 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 $25.00. First resistance is seen at last week’s high of $26.58 and then at the April high of $26.765. Next support is seen at $26.00 and then at last week’s low of $25.745. Wyckoff's Market Rating: 5.5.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.