Gold price powers to 4.5-mo. peak as USDX erosion continues
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(Kitco News) - Gold and silver prices are higher at midday, with gold notching a new 4.5-month high. A slumping U.S. dollar on the foreign exchange market and a wobbly U.S. stock market on this day worked to support the precious metals markets. Charts remain bullish for both metals and that continues to invite technically based traders to the long side. June gold futures were last up $8.60 at $1,893.10 and July Comex silver was last up $0.105 at $28.01 an ounce.
Global stock markets were mixed but mostly firmer overnight. U.S. stock indexes were firmer early on but slipped below unchanged by midday. Generally, trader and investor attitudes are a bit more upbeat this week as inflation worries have subsided, at least for now. Several commodity market prices have backed down from their multi-year highs and Federal Reserve officials in the recent comments appear to be tamping down notions of problematic price inflation. It could be that the marketplace is finally taking heed to the Federal Reserve's official stance, for some time now, on inflation rising at an accelerating pace recently: it's only transitory.
The key outside markets today see the U.S. dollar index weaker and hitting a 4.5-month low. Meantime, Nymex crude oil prices are higher and are trading around $66.20 a barrel as the market has made a good rebound from last week's selling pressure. The yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.577%.
Technically, June gold futures prices scored a bullish “outside day” up on the daily bar chart. The gold bulls have the solid overall near-term technical advantage. 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 $1,950.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,850.00. First resistance is seen at $1,900.00 and then at $1,915.00. First support is seen at today's low of $1,873.20 and then at $1,864.20. Wyckoff's Market Rating: 7.5
July silver futures 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 $26.78. First resistance is seen at today's high of $28.16 and then at $28.50. Next support is seen at today's low of $27.545 and then at last week's low of $27.265. Wyckoff's Market Rating: 7.0.
July N.Y. copper closed down 235 points at 450.10 cents today. Prices closed near the session low today. The copper bulls still have the firm overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the May high of 488.80 cents. The next downside price objective for the bears is closing prices below solid technical support at 437.00 cents. First resistance is seen at today's high of 458.15 cents and then at 462.50 cents. First support is seen at last week's low of 444.40 and then at 440.00 cents. Wyckoff's Market Rating: 7.0.