Gold, silver see price gains amid greenback erosion
(Kitco News) - Gold and silver prices are higher in early morning U.S. trading Monday and near their multi-week highs scored late last week. The metals are supported by a slumping U.S. dollar index that hit a 2.5-month low overnight. The near-term technical postures for both metals are also bullish, which continues to invite the shorter-term futures traders on board the long sides of those markets. June gold futures were last up $9.50 at $1,840.60 and July Comex silver was last up $0.363 at $27.84 an ounce.
Global stock markets were mostly higher overnight. U.S. stock indexes are pointed toward mixed openings when the New York day session begins 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 firmer and trading around $65.25 a barrel. Meantime, the yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.595%.
U.S. economic data due for release Monday is light and includes the employment trends index. Several Federal Reserve officials are slated to speak this week.
Technically, June gold futures bulls have the firm overall near-term technical advantage amid a six-week-old price uptrend 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 last week’s high of $1,844.60 and then at $1,850.00. First support is seen at the overnight low of $1,830.50 and then at $1,817.60. Wyckoff's Market Rating: 6.5
The silver bulls have the firm overall near-term technical advantage amid a six-week-old price uptrend in place on the daily bar chart. Silver bulls' next upside price objective is closing July futures prices above solid technical resistance at $29.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $26.00. First resistance is seen at $28.00 and then at $28.475. Next support is seen at the overnight low of $27.585 and then at Friday’s low of $27.23. Wyckoff's Market Rating: 6.5.