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Gold price a bit weaker as U.S. stock market stable Thursday

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(Kitco News) - Gold prices are modestly lower in early U.S. trading Thursday, pressured in part by the stabilization of the U.S. stock indexes this week, after hitting 12-month lows last Friday. However, higher crude oil prices and falling U.S. Treasury yields late this week are limiting the downside in the precious metals. June gold futures were last down $3.00 at $1,843.00. July Comex silver futures were last up $0.035 at $21.91 an ounce.

Global stock markets were mixed overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. The U.S. stock indexes have been wobbly recently, amid geopolitical and inflation concerns.

Reports overnight said Chinese Premier Li Keqiang gave a dour warning about the world's second-largest economy as it struggles from Covid-19 outbreaks and lockdowns. The premier said the situation is worse than 2020 when the pandemic first emerged. He urged more efforts to reduce a soaring unemployment rate. China's supply-chain bottlenecks and the Russia-Ukraine war have driven up the prices of goods and services worldwide.

Broker SP Angel reports in an email dispatch today that inflation is causing consumers to slow their consumption of non-essential items so they can pay for fuel, energy and food. "Consumers are also increasingly wary of the risk of unemployment and are rebuilding cash and paying down debt. Companies are also postponing or even cancelling capital expansion plans as increasing input prices and variable logistics create uncertainty as the era of cheap money is coming to an end.  …Netflix seems to be an early indicator of cancelled subscriptions in response to financial stress and a dramatic fall in consumer sentiment."

Billionaire Bill Ackman says Fed needs to raise rates now to beat inflation, protect the economy

The key outside markets today see Nymex crude oil futures prices higher and trading around $111.25 a barrel. Meantime, the U.S. dollar index is weaker in early trading. The yield on the 10-year U.S. Treasury note is fetching 2.724%.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the second estimate of first-quarter gross domestic product, pending home sales and the Kansas City Fed manufacturing survey.

Live 24 hours gold chart [Kitco Inc.]

Technically, the June gold futures bears have the overall near-term technical advantage. A 2.5-month-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 $1,900.00. 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 today's high of $1,852.80 and then at this week's high of $1,869.10. First support is seen at today's low of $1,836.30 and then at $1,830.00. 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. 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 $22.215 and then at $22.50. Next support is seen at this week's 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.