Gold firmer amid rallying crude oil, bullish charts
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(Kitco News) - Comex gold futures prices are moderately up in midday U.S. trading Monday. Silver prices are near steady. The key outside markets are friendly for the precious metals to start the trading week, as the U.S. dollar index is a bit weaker and crude oil prices are solidly higher. However, gains in the precious metals are being limited by a rise in U.S. Treasury yields today. The technical charts remain solidly bullish for gold and silver. June gold was last up $11.10 at $2,035.80 and July silver was steady at $25.93.
Global stock markets were mixed but mostly higher overnight. U.S. stock indexes are mixed at midday. There is less risk aversion in the general marketplace to start the trading week. U.S. banking stocks have recovered some of their recent losses. Banking analysts will today closely scrutinize the Federal Reserve’s first-quarter Senior Loan Officer Survey, to get a gauge on how much the banking industry has pulled back in its lending practices the past few months.
President Biden on Tuesday will meet with House Speaker Kevin McCarthy and other congressional leaders to discuss raising or suspending the U.S. debt ceiling, setting the stage for a current standoff between the President and House Republicans. Biden’s invitation came after Treasury Secretary Janet Yellen notified lawmakers last week that the U.S. could default on its debt as early as June 1 if Congress does not raise or suspend the debt limit before that time.
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The U.S. data point of the week is Wednesday morning’s April consumer price index report, which is expected to come in at up 5.0%, year-on-year, which would be the same as reported in the March CPI. The April core CPI is forecast at up 5.5% versus up 5.6% in the March report.
The key outside markets today see the U.S. dollar index slightly lower. Nymex crude oil prices are solidly higher and trading around $73.00 a barrel. Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching around 3.48%.
Technically, June gold futures bulls have the solid overall near-term technical advantage. Prices are in a 2.5-month-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the record high of $2,085.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,980.00. First resistance is seen at $2,050.00 and then at $2,063.40. First support is seen at today’s low of $2,022.00 and then at last Friday’s low of $2,007.00. Wyckoff's Market Rating: 8.0
July silver futures bulls have the solid overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $27.00. The next downside price objective for the bears is closing prices below solid support at $24.00. First resistance is seen at the April high of $26.435 and then at $26.75. Next support is seen at last Friday’s low of $25.41 and then at $25.00. Wyckoff's Market Rating: 8.0.
July N.Y. copper closed up 475 points at 393.05 cents today. Prices closed nearer the session high. The copper bears have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 408.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the January low of 372.45 cents. First resistance is seen at today’s high of 395.95 cents and then at last week’s high of 400.50 cents. First support is seen at today’s low of 387.65 cents and then at the April low of 381.65 cents. Wyckoff's Market Rating: 4.0.