AM-PM Roundup
Gold, silver up as U.S. bond yields, stock indexes down
(Kitco News) - Gold and silver prices are higher in midday U.S. trading Thursday, lifted by bullish outside market forces on this day that include a dip in U.S. Treasury yields and a sell off in U.S. stock indexes. A drop in crypto currencies late this week is also likely benefiting the gold and silver market bulls. June gold futures were last up $16.40 at $1,939.40 and May Comex silver was last up $0.202 at $24.655 an ounce.
A feature in the marketplace late this week is Nymex crude oil futures prices that have dropped sharply and hit a three-week low of $93.81 today. Dropping oil prices are a bearish element for the entire raw commodity sector, including the metals.
Traders Thursday were still digesting the Federal Reserve FOMC meeting minutes released Wednesday afternoon, which saw a hawkish in tone. However, typically dovish Fed governor Lael Brainard on Tuesday somewhat pre-empted the FOMC minutes by sounding aggressively hawkish on U.S. monetary policy and the inflation fight. U.S. Treasury yields are rising again and this week hit a three-year high. Treasury yields are very likely headed still higher in the coming weeks, or longer. There's an old trading adage that says anytime a trade seems like a "no-brainer" the trader needs to be extra beware. This longtime market watcher believes there is one futures trade at present that is an exception to that old maxim: selling U.S. Treasury bond and note futures. U.S. Treasury prices fall as yields rise. The benchmark 10-year U.S. Treasury note yield is presently fetching 2.65%.
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Gold prices continue to consolidate above $1,900 as bond yields hit three-year high |
Meantime, the U.S. dollar index is slightly higher today and hit a nearly two-year high. Greenback bulls remain very strong, technically and fundamentally.
Crypto currencies are under pressure late this week, due in part to news the U.S. Treasury is set to call for more oversight regulation of the cryptos.
![Live 24 hours gold chart [Kitco Inc.]](/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, April gold futures bulls have the overall near-term technical advantage amid recent sideways and choppy trading. Bulls' next upside price objective is to produce a close above solid resistance at $1,967.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the March low of $1,888.30. First resistance is seen at today's high of $1,941.70 and then at $1,950.00. First support is seen at today's low of $1,923.30 and then at this week's low of $1,916.20. Wyckoff's Market Rating: 6.0
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
May silver futures bulls have the slight overall near-term technical advantage. However, prices are in a four-week-old downtrend on the daily bar chart. 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 $23.50. First resistance is seen at $25.00 and then at this week's high of $25.11. Next support is seen at today's low of $24.335 and then at this week's low of $24.20. Wyckoff's Market Rating: 5.5.
May N.Y. copper closed down 340 points at 470.45 cents today. Prices closed near mid-range today. The copper bulls have the 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 the March low of 446.85 cents. First resistance is seen at Wednesday's high of 478.85 cents and then at this week's high of 486.00 cents. First support is seen at last week's low of 464.20 cents and then at 460.00 cents. Wyckoff's Market Rating: 6.0.
