Price gains in gold, silver, amid ongoing inflation concerns
(Kitco News) - Gold and silver prices are higher in early U.S. trading Monday, supporting by continued worries about problematic price inflation which will likely get worse before it gets better. June gold futures were last up $12.40 at $1,936.30 and May Comex silver was last up $0.291 at $24.95 an ounce.
Global stocks markets were mixed but mostly firmer overnight. The U.S. stock indexes are pointed toward mixed openings when the New York day session begins. The U.S. stock indexes are in near-term price uptrends. Markets in mainland China were closed for a holiday Monday.
The Russia-Ukraine war drags on, with the atrocities inflicted by Russian dictator Putin’s aggression becoming more apparent to the world. Such may prompt the U.S. and European Union to implement even more sanctions on Russia, including on its oil and natural gas exports. Still, from a markets perspective, not much has changed in the war the past couple weeks. That has allowed many markets to stabilize and become less volatile. It has also allowed the metals markets to focus more on rising inflation and its implications on markets and world economies. History shows that problematic price inflation has been bullish for metals market prices.
Nymex crude oil prices are slightly up and trading around $99.50 a barrel. Meantime, the U.S. dollar index is higher early today. The benchmark U.S. 10-year Treasury note is presently yielding 2.395%.
|Gold price posts best results since Q3 2020, path to $2,000 looks clear|
U.S. economic data due for release Monday includes the employment trends index, and manufacturers’ shipments and inventories.
Technically, the June gold futures bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in April futures above major resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,850.00. First resistance is seen at $1,955.00 and then at $1,975.00. First support is seen at the overnight low of $1,918.20 and then at $1,900.00. Wyckoff's Market Rating: 6.0
May silver futures bulls have the slight overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $26.16 an ounce. The next downside price objective for the bears is closing prices below solid support at the March low of $24.045. First resistance is seen at $25.285 and then at $25.50. Next support is seen at Friday’s low of $24.565 and then at $24.25. Wyckoff's Market Rating: 5.5.