Gold, silver see price declines amid rally in global stock markets
(Kitco News) - Gold and silver prices are lower in early U.S. trading Thursday, pressured in part by a rally in most global stock markets overnight and on some profit-taking pressure from the shorter-term futures traders. The chart postures of the U.S. stock indexes have improved this week, to pull some money away from the safe-haven metals. June gold futures were last down $12.30 at $1,943.00 and May Comex silver was last down $0.511 at $24.76 an ounce.
The U.S. stock indexes are pointed toward higher openings when the New York day session begins. The U.S. stock index bulls are having the better week, so far, as near-term price downtrends in the indexes have stalled out. However, risk appetite among traders and investors is by no means robust due to major geopolitical concerns.
The World Bank and IMF meetings continue in Washington, D.C. today. Major central bank chiefs, including Fed Chair Powell, are scheduled to speak on and IMF panel today. The central bankers are expected to sound hawkish tones on their monetary policies.
In overnight news, Euro zone inflation in March hit a record high of 7.4%, year-on-year.
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Nymex crude oil futures prices are firmer today and trading around $103.00 a barrel. The U.S. dollar index is lower again early today on a corrective pullback after hitting a two-year high Tuesday. The yield on the 10-year U.S. Treasury note is presently fetching 2.869%.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the Philadelphia Fed business survey and leading economic indicators.
Technically, the June gold futures bulls have the overall near-term technical advantage but have faded this week. 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 $1,900.00. First resistance is seen at $1,950.00 and then at the overnight high of $1,960.10. First support is seen at the overnight low of $1,938.00 and then at $1,928.00. Wyckoff's Market Rating: 6.5
May silver futures bulls have the overall near-term technical advantage but are fading and need to show fresh power soon to keep it. Silver bulls' next upside price objective is closing prices above solid technical resistance at the April high of $26.495 an ounce. The next downside price objective for the bears is closing prices below solid support at $24.00. First resistance is seen at $25.00 and then at today’s high of $25.31. Next support is seen at today’s low of $24.64 and then at $24.50. Wyckoff's Market Rating: 6.0.