Gold, silver seeing normal, corrective pauses in price uptrends
(Kitco News) - Gold and silver prices are a bit firmer in midday U.S. trading Wednesday. The two metals are in normal pauses or corrections on the charts after gold hit a five-month high Tuesday. The technical postures for both metals remain fully bullish amid price uptrends in place on the daily bar charts. August gold futures were last up $1.50 at $1,905.20 and July Comex silver was last up $0.058 at $27.16 an ounce.
Global stock markets were mixed overnight. U.S. stock indexes are firmer as midday approaches. There are no major geopolitical flare-ups at present, while trader and investor risk aversion is not keen. That’s a scenario that should continue to support upside price action in most global stock markets and could somewhat weigh on the safe-haven metals.
In overnight news, the Euro zone’s April producer price index was reported up 1.0% from March and up 7.6% year-on-year. Those are numbers that are starting to fall in line with many analysts and economists who have been predicting inflationary price pressures will become more acute in the coming months.
Turkey’s president has called for lower interest rates, saying that reducing the burden of interest costs on producers would lead to lower inflation in the future. His call for an easing of monetary policy helped push the Turkish lira to a record low against the U.S. dollar Wednesday.
The key outside markets today see the U.S. dollar index modestly higher on a corrective bounce from recent selling pressure. Nymex crude oil prices are higher and near the 2.5-year high hit on Tuesday, trading around $68.50 a barrel. At an OPEC meeting Tuesday the cartel said it would gradually ramp up its collective oil production and predicted a rise in global oil demand in the coming months. The yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.606%.
Technically, August gold futures bulls have the solid overall near-term technical advantage. A two-month-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 the January high of $1,971.50. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,850.00. First resistance is seen at this week’s high of $1,919.20 and then at $1,925.00. First support is seen at this week’s low of $1,894.50 and then at $1,884.30. Wyckoff's Market Rating: 7.5
July silver futures bulls have the firm overall near-term technical advantage. A two-month-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 $28.34 and then at this week’s high of $28.71. Next support is seen at today’s low of $27.765 and then at $27.48. Wyckoff's Market Rating: 7.0.
July N.Y. copper closed down 345 points at 461.90 cents today. Prices closed nearer the session low today. The copper bulls have the solid 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 this week’s high of 470.70 cents and then at 475.00 cents. First support is seen at 457.50 cents and then at 455.00 cents. Wyckoff's Market Rating: 7.5.