(Kitco News) - Gold prices are higher and hit another record high overnight, at $2,308.80 basis June Comex futures, while silver prices are also up and hit a two-year high of $26.68, basis May Comex futures. Safe-haven demand is featured as geopolitical tensions in the Middle East have ratcheted up this week. Bullish charts are also pushing the technical trades to the long side of the two precious metals markets. June gold was last up $9.00 at $2,290.80. May silver was last up $0.432 at $26.355.
The economic data pace picks up the rest of this week, including Fed speak. U.S. economic reports due for release Wednesday include the weekly MBA mortgage applications survey, the ADP national employment report, the U.S. services PMI, the ISM report on business services, and the weekly DOE liquid energy stocks report. Several Federal Reserve officials are also scheduled to speak today, including Fed Chairman Jerome Powell. On Friday comes the U.S. employment situation report.
Asian and European stock indexes were mostly lower overnight. U.S. stock indexes are pointed toward weaker openings when the New York day session begins.
In overnight news, there was a major 7.4 magnitude earthquake in Taiwan that killed at least seven and injured dozens. The temblor was the strongest in a quarter century and may have impacted the region’s semiconductor industry.
Eurozone inflation cooled a bit in March, as its consumer price index was reported up 2.4%, compared to up 2.8% in February, year-on-year. Reads a DowJones Newswires headline: “Eurozone inflation cools, setting the stage for June rate cut.”
The key outside markets today see the U.S. dollar index a bit weaker. Nymex crude oil prices are firmer, hit a five-month high, and are trading around $85.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 4.36%.
Technically, the gold futures bulls have the strong overall near-term technical advantage. A six-week-old uptrend 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 $2,400.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,200.00. First resistance is seen at the overnight contract high of $2,308.80 and then at $2,320.00. First support is seen at Tuesday’s of $2,267.10 and then at $2,250.00. Wyckoff's Market Rating: 9.0.
The silver bulls have the solid overall near-term technical advantage. Bulls have revived a six-week-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing May futures prices above solid technical resistance at $27.50. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at the overnight high of $26.68 and then at $27.00. Next support is seen at the overnight low of $26.235 and then at $26.00. Wyckoff's Market Rating: 7.5.
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