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Gold, silver rally as stock markets, bond yields drop

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(Kitco News) - Gold and silver prices are solidly up in midday U.S. trading Tuesday, boosted by another sell off in the U.S. stock indexes, falling U.S. Treasury yields and by the recent sharp losses in the U.S. dollar index that hit another four-week low today. Risk aversion is keener in the general marketplace early this week, and that’s inviting safe-haven demand for the precious metals. June gold futures were last up $19.10 at $1,866.90. July Comex silver futures were last up $0.392 at $22.12 an ounce.

Global stock markets were mostly lower overnight. U.S. stock indexes are lower at midday and are in or near bear market territory, defined as 20% or more below their recent highs. Geopolitical and inflation worries are keeping equities market bulls squeamish. Fears of U.S. economic recession are rising after some downbeat U.S. economic data released today.


Hedge funds continue to sell gold but sentiment is shifting

Later today, Fed Chairman Jerome Powell will deliver remarks at an economic summit in Las Vegas.

The other key outside market today sees Nymex crude oil futures prices weaker and trading around $109.50 a barrel. Meantime, the yield on the 10-year U.S. Treasury note is fetching 2.749%.

Live 24 hours gold chart [Kitco Inc.]

Technically, June gold futures prices hit a two-week high again today. A 2.5-month-old price downtrend is still in place on the daily bar chart. However, more price gains this week could negate the downtrend. Bears have the overall near-term technical advantage. However, bulls have momentum on their side. Bulls' next upside price objective is to produce a close above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the May low of $1,785.00. First resistance is seen at $1,875.00 and then at $1,883.00. First support is seen at $1,850.00 and then at this week’s low of $1,843.30. Wyckoff's Market Rating: 4.0.

Live 24 hours silver chart [ Kitco Inc. ]

July silver futures see a price downtrend still in place on the daily bar chart. However, more price gains this week could negate the downtrend. The silver bears have the overall near-term technical advantage. 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 today’s high of $22.215 and then at $22.50. Next support is seen at today’s low of $21.645 and then at $21.50. Wyckoff's Market Rating: 3.0.

July N.Y. copper closed down 345 points at 431.05 cents today. Prices closed nearer the session high today. The copper bears have the overall near-term technical advantage. However, more gains this week could negate a price downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 450.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the May low of 403.70 cents. First resistance is seen at this week’s high of 435.50 cents and then at 440.00 cents. First support is seen at today’s low of 425.65 cents and then at 422.50 cents. Wyckoff's Market Rating: 3.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.