Corrective price rebounds in gold, silver, amid price downtrends
(Kitco News) - Gold and silver prices are higher in early U.S. trading Thursday, on corrective bounces amid existing price downtrends firmly in place on the daily bar charts. A lower U.S. dollar index and a decline in U.S. Treasury yields on this day are also working in favor of the metals market bulls. June gold futures were last up $13.50 at $1,829.50. July Comex silver futures were last up $0.201 at $21.755 an ounce.
Global stock markets were mostly lower overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins, on follow-through selling pressure from Wednesday’s big losses that saw the S&P 500 put in its worst daily performance in almost two years. Heightened worries about corporate earnings have hit the marketplace this week after Wal Mart and Target posted dismal earnings results. Both companies cited inflation as the main culprit for their dour earnings numbers. An economic recession in the U.S. is now on the minds of traders and investors who were already saddled with other concerns, including the Russia-Ukraine war and Covid cases causing major cities in China to be on lockdown, which is disrupting global trade.
|Commodities can thrive in a bear market - Andrew O'Donnell|
The key outside markets today see Nymex crude oil futures prices lower and trading around $108.00 a barrel. Meantime, the U.S. dollar index is lower in early trading. The yield on the 10-year U.S. Treasury note is fetching 2.859%.
U.S. economic data due for release day Thursday includes the weekly jobless claims report, the Philadelphia Fed business survey, existing home sales and leading economic indicators.
Technically, the June gold futures bears have the firm overall near-term technical advantage. A nine-week-old downtrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at $1,875.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,750.00. First resistance is seen at this week’s high of $1,834.80 and then at $1,850.00. First support is seen at $1,815.00 and then at the overnight low of $1,808.40. Wyckoff's Market Rating: 3.0
July silver futures bears have the solid overall near-term technical advantage. Prices are in a nine-week-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $23.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the May low of $20.42. First resistance is seen at $22.00 and then at $22.50. Next support is seen at the overnight low of $21.25 and then at $21.00. Wyckoff's Market Rating: 2.5.