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Gold, silver see price declines at greenback surges

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(Kitco News) - Gold and silver prices are moderately lower in early U.S. dealings Thursday, with both hitting six-week lows overnight. The U.S. dollar index has rallied recently, hitting a seven-week high overnight. That's a significantly bearish outside-market development for the metals markets. Rising U.S. Treasury yields this week are also a negative for the precious metals. June gold was last down $7.10 at $1,977.80 and July silver was down $0.197 at $23.70.

Asian and European stock markets were mostly higher overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins, following their good gains Wednesday. Trader and investor risk appetite has 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 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. Nymex crude oil prices are weaker and trading around $72.50 a barrel. Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching 3.593%.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the Philadelphia Fed business survey, existing home sales and leading economic indicators.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bulls have the overall near-term technical advantage but are fading. A price uptrend on the daily bar chart has been negated. Prices are starting to trend down on the daily bar chart. Bulls' next upside price objective is to produce a close in June futures above solid resistance at the May high of $2,085.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,950.00. First resistance is seen at the overnight high of $1,988.80 and then at $2,000.00. First support is seen at the overnight low of $1,974.60 and then at the April low of $1,965.90. Wyckoff's Market Rating: 6.5

Live 24 hours silver chart [ Kitco Inc. ]

The silver bears have the overall near-term technical advantage. Prices are now trending lower on the daily chart. Silver bulls' next upside price objective is closing July futures prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at $23.00. 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 $23.575 and then at $23.00. Wyckoff's Market Rating: 4.0.

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.