Solid price gains for gold, silver on safe-haven demand, inflation worries
(Kitco News) - Gold and silver prices are posting good gains in early U.S. action Monday, on safe-haven buying interest and amid worries about inflation becoming even more problematic in the coming months. The near-term technical postures for both metals have become more bullish just recently, and that’s also inviting the chart-based speculators to the long sides of those markets. June gold futures were last up $20.70 at $1,966.50 and May Comex silver was last up $0.597 at $25.42 an ounce.
Global stocks markets were mixed overnight. The U.S. stock indexes are pointed toward lower openings when the New York day session begins. The Russia-Ukraine war is in its seventh week amid no signs of any ceasefire. The Covid pandemic continues to surge in China, which has once again clouded the growth outlook for the world’s second-largest economy. Inflation worries are also near the front burner of the marketplace. The U.S. data point of the week comes Tuesday with the consumer price index report for March, which is expected to come in hot at up 8.4%, year-on-year. It’s a short trading week as U.S. and other world markets are closed for Friday for the Good Friday holiday.
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Nymex crude oil futures prices are solidly lower today and trading around $93.50 a barrel. The U.S. dollar index is firmer early today. The yield on the 10-year U.S. Treasury note is presently fetching 2.75% and hit a three-year high.
There is no major U.S. economic data due for release Monday.
Technically, the June gold futures bulls have the overall near-term technical advantage and now have momentum. 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 the March low of $1,893.20. First resistance is seen at $1,975.00 and then at $2,000.00. First support is seen at $1,950.00 and then at the overnight low of $1,942.90. Wyckoff's Market Rating: 6.6
May silver futures bulls have the overall near-term technical advantage and gained fresh power today. 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 $25.75 and then at $26.00. Next support is seen at $25.00 and then at today’s low of $24.795. Wyckoff's Market Rating: 6.0.