Gold, silver bulls gain more power amid price uptrends
(Kitco News) - Gold and silver prices are are higher and have hit three-month and 2.5-month highs, respectively, in midday U.S. trading Monday. The metals are supported early this week by a slumping U.S. dollar index that hit a 2.5-month low today. The near-term technical postures for both metals are also bullish and getting more so, which continues to invite the shorter-term futures traders on board the long side. June gold futures were last up $8.90 at $1,840.30 and July Comex silver was last up $0.058 at $27.535 an ounce.
Global stock markets were mostly higher overnight. U.S. stock indexes are mixed at midday and at or near their recent record highs.
The marketplace is still reverberating from the surprising U.S. jobs report for April, released last Friday, that showed a paltry non-farm payrolls rise of 266,000. Forecasts were for a 1 million rise and compares to a rise of 916,000 in March. It was one of the biggest misses from expectations in over 20 years. The U.S. dollar index is reeling from the report. The jobs report has at least temporarily thrown cold water on notions the Federal Reserve may be forced to raise interest rates much sooner than many expected and that the U.S. economy could be running in high gear by the end of the year.
Traders and investors are watching developments regarding the cyberattack on the U.S. Colonial Pipeline company that has shut the pipeline system down and halted much of the gasoline distribution on the East Coast.
The other key outside market today sees Nymex crude oil prices near steady and trading around $64.85 a barrel. Meantime, the yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.574%.
Technically, June gold futures bulls have the firm overall near-term technical advantage. A six-week-old price uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,881.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,775.00. First resistance is seen at today’s high of $1,846.30 and then at $1,850.00. First support is seen at today’s low of $1,830.50 and then at Friday’s low of $1,813.40. Wyckoff's Market Rating: 6.5
July silver futures bulls have the overall near-term technical advantage. A six-week-old uptrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $28.475 an ounce. The next downside price objective for the bears is closing prices below solid support at $25.745. First resistance is seen at today’s high of $28.005 and then at $28.25. Next support is seen at Friday’s low of $27.23 and then at $27.00. Wyckoff's Market Rating: 6.5.
July N.Y. copper closed down 350 points at 471.30 cents today. Prices closed nearer the session low today and saw some profit taking after hitting a contract and nearly 10-year high of 488.80 cents early on today. The copper bulls still have the strong overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 500.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 442.00 cents. First resistance is seen at 475.00 cents and then at 480.00 cents. First support is seen at 465.00 and then at 460.00 cents. Wyckoff's Market Rating: 9.0.