Gold, silver push higher as greenback slumps
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(Kitco News) - Gold and silver prices are solidly up in midday U.S. trading Thursday, supported by a drop in the U.S. dollar index on this day. The near-term chart postures are improving for both metals, and that’s also inviting more technically oriented traders to the long sides. August gold futures were last up $24.70 at $1,873.50. July Comex silver futures were last up $0.42 at $22.34 an ounce.
Today’s ADP national employment report for May showed a less-than-expected rise of 128,000. That report is a precursor to Friday morning’s U.S. employment situation report for May, which is expected to show the key non-farm jobs number at up 328,000, after a rise of 428,000 reported in April. The U.S. unemployment rate is expected to be 3.5% versus 3.6% reported in April. The ADP report’s jobs number has not been a reliable forecaster for the more important non-farm jobs number that follows it.
Global stock markets were mixed overnight. U.S. stock indexes are firmer at midday. The U.S. stock index bears are still enjoying the firm overall near-term technical advantage, as risk appetite in the marketplace is not robust.
In other news, the Euro zone reported its April producer price index was up a stunning 37.2%, year-on-year. Most of that was rising energy costs, but excluding energy the PPI was still up 15.6% annually.
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The key outside markets today see Nymex crude oil prices higher and trading around $117.00 a barrel. An OPEC-plus meeting today will be closely monitored. The cartel is expected to raise its collective oil production, and may sanction Russian oil. The U.S. dollar index is lower in early trading. The yield on the 10-year U.S. Treasury note is fetching 2.915%.
Technically, August gold futures prices were poised to close at a four-week high close. An 11-week-old price downtrend on the daily bar chart has at least temporarily been negated. Bears still have the overall near-term technical advantage but the bulls have gained momentum. 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 $1,800.00. First resistance is seen at $1,882.50 and then at $1,900.00. First support is seen at $1,850.00 and then at this week’s low of $1,830.20. Wyckoff's Market Rating: 4.0.
July silver futures prices were poised to close at a four-week high close today. An 11-week-old price downtrend on the daily bar chart has been negated. The silver bears still have the overall near-term technical advantage. However, the bulls have gained momentum. 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 $21.00. First resistance is seen at $22.475 and then at $23.00. Next support is seen at $22.00 and then at today’s low of $21.785. Wyckoff's Market Rating: 3.5.
July N.Y. copper closed up 2,210 points at 454.95 cents today. Prices closed near the session high today and hit a five-week high. The copper bulls have gained the overall near-term technical advantage. A three-week-old price uptrend is in place on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 475.00 cents. The next downside price objective for the bears is closing prices below solid technical support at this week’s low of 425.90 cents. First resistance is seen at 460.00 cents and then at 465.00 cents. First support is seen at 450.00 cents and then at 444.00 cents. Wyckoff's Market Rating: 6.0.