Gold, silver prices power higher as crypto currencies crumble
(Kitco News) - Gold and silver prices are higher in midday U.S. trading Monday, with gold notching a nearly four-month high and silver at a three-month peak. Both precious metals are being supported by global stock markets are stumbling a bit to start the trading week and as the crypto currency markets are taking a bigger hit. Bullish technical charts for gold and silver also have the metals bulls very confident at present. June gold futures were last up $29.30 at $1,867.50 and July Comex silver was last up $0.935 at $28.30 an ounce.
Reports today said money flows are moving back into the SPDR Gold Trust exchange traded fund—possibly due in part to the crypto currencies that have become wobbly recently.
Global stock markets were mostly weaker overnight. U.S. stock indexes are lower at midday. The discussion in the marketplace continues to be on whether inflationary pressures will grow to levels that create economic distress down the road. The line coming from the Federal Reserve at present is that rising inflation is only a “transitory” matter. However, other economists and market analysts say inflation cannot help but become problematic in the coming months and point to strong evidence in place already, including generally rising raw commodity prices. History shows that price inflation that becomes problematic is bullish for the metals markets.
In overnight news, China reported more generally strong economic data Monday, as industrial output in April was up 9.8%, year-on-year, while retail sales were up 17.7% in the period. The retail sales figure was less than forecast. These numbers coming out of the world's second-largest economy certainly land in the higher-inflation camp.
The key outside markets today see the U.S. dollar index weaker. Meantime, Nymex crude oil prices are higher and trading around $66.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.625%.
Technically, June gold futures prices poked back above the key 200-day moving average. The gold bulls have the firm overall near-term technical advantage and gained more power today. A seven-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 $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at $1,875.00 and then at $1,881.00. First support is seen at $1,850.00 and then at today's low of $1,841.10. Wyckoff's Market Rating: 7.0
July silver futures prices hit a three-month high today. The silver bulls have the firm overall near-term technical advantage. A seven-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 the February high of $30.015 an ounce. The next downside price objective for the bears is closing prices below solid support at last week's low of $26.78. First resistance is seen at $28.50 and then at $29.00. Next support is seen at $28.00 and then at today's low of $27.44. Wyckoff's Market Rating: 7.0.
July N.Y. copper closed up 545 points at 470.95 cents today. Prices closed near the session high today. The copper bulls 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 460.60 and then at 455.00 cents. Wyckoff's Market Rating: 8.5.