AM-PM Roundup
Bearish outside metals gang up on gold, silver
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(Kitco News) - Gold and silver prices are solidly lower in midday U.S. dealings Thursday, with both hitting multi-week lows. The three key outside markets are all bearish for the precious metals today. The U.S. dollar index is solidly up and hit a seven-week high. Rising U.S. Treasury yields and lower crude oil prices on this day complete the bearish trifecta. June gold was last down $26.00 at $1,959.00 and July silver was down $0.262 at $23.635.
Trader and investor risk appetite has also up-ticked late this week, which is also a negative for the safe-haven metals. The U.S. debt-limit extension talks are reportedly going better. President Joe Biden and House Speaker Kevin McCarthy have both made upbeat comments on getting a deal done before June 1. Reads a Barrons headline today: "Debt ceiling optimism brings markets back to life. It's not without risks." The story details that while the debt matter getting fixed is a positive, the potential negatives are still lingering, including a still-hawkish Federal Reserve, recession concerns, and U.S. and European banking jitters. The marketplace is by no means robustly risk-on at present.
Asian and European stock markets were mostly higher overnight. U.S. stock indexes are mixed at midday, following their good gains Wednesday.
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The Fed could be forced to cut as soon as September - JPMorgan Asset Management |
The key outside markets today see the U.S. dollar index higher and at a seven-week high. The greenback bulls have momentum to suggest more upside. Nymex crude oil prices are lower and trading around $71.50 a barrel. Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching around 3.6%.
![Live 24 hours gold chart [Kitco Inc.]](/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, June gold futures prices hit a seven-week low today. Bulls still have the overall near-term technical advantage but are fading fast. A 2.5-month-old uptrend on the daily bar chart has been negated. Prices are now in a downtrend on the daily bar chart, to suggest a near-term market top is in place. Bulls' next upside price objective is to produce a close above solid resistance at $2,025.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at today's high of $1,988.80 and then at $2,000.00. First support is seen at today's low of $1,954.40 and then at $1,950.00. Wyckoff's Market Rating: 6.0
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
July silver futures prices hit a six-week low again today. The silver bulls and bears are on a level overall near-term technical playing field but the bulls are fading. Silver bulls' next upside price objective is closing prices above solid technical resistance at $26.00. The next downside price objective for the bears is closing prices below solid support at $22.50. First resistance is seen at $24.00 and then at this week's high of $24.395. Next support is seen at today's low of $23.485 and then at $23.00. Wyckoff's Market Rating: 5.0.
July N.Y. copper closed down 620 points at 369.25 cents today. Prices closed nearer the session low today. The copper bears have the overall near-term technical advantage. Prices are in a four-week-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 400.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 350.00 cents. First resistance is seen at this week's high of 377.90 cents and then at 380.00 cents. First support is seen at this week's low of 365.25 cents and then at 360.00 cents. Wyckoff's Market Rating: 3.0.
