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More price upside for gold, silver as USDX, U.S. bond yields decline

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(Kitco News) - Gold and silver prices are moderately up in early U.S. trading Tuesday, boosted by the recent sharp losses in the U.S. dollar index that hit another four-week low overnight. Falling U.S. Treasury yields lately are also bullish for the precious metals markets. Gold and silver are also seeing their near-term technical postures improve just a bit, to begin to invite some fresh chart-based buying interest. June gold futures were last up $9.80 at $1,857.40. July Comex silver futures were last up $0.207 at $21.93 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. The U.S. stock indexes 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. These are also bullish elements for the safe-haven metals.

In overnight news, China laid out a comprehensive plan to shore up its economy that has been hit hard by Covid lockdowns. The marketplace was unimpressed and showed little reaction to the plans.

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


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The key outside markets today see Nymex crude oil futures prices slightly higher and trading around $110.50 a barrel. Meantime, the U.S. dollar index is sharply weaker and hit a four-week low in early trading. The yield on the 10-year U.S. Treasury note is fetching 2.797%.

U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and chain store retail reports, the U.S. flash manufacturing purchasing managers index (PMI), the flash services PMI, the Richmond Fed business survey, new residential sales and the ISM semiannual economic forecast.

Live 24 hours gold chart [Kitco Inc.]

Technically, the June gold futures bears have the overall near-term technical advantage but the bulls have gained momentum. A 2.5-month-old downtrend is still in place on the daily bar chart. However, more price gains this week would negate the uptrend. Bulls’ next upside price objective is to produce a close in June futures 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 this week’s high of $1,864.20 and then at $1,875.00. First support is seen at this week’s low of $1,843.30 and then at $1,830.60. Wyckoff's Market Rating: 3.5

Live 24 hours silver chart [ Kitco Inc. ]

July silver futures bears have the overall near-term technical advantage. Prices are in a 2.5-month-old downtrend on the daily bar chart. However, more price gains this week would negate the uptrend. 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 this week’s high of $22.205 and then at $22.50. Next support is seen at the overnight low of $21.645 and then at $21.50. 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.