(Kitco News) - Gold prices are near steady and have traded both sides of unchanged near midday Monday. June Comex gold reached a record high of $2,372.50 overnight. Silver prices hit a two-year high overnight, with May Comex futures hitting $28.195. Some routine profit taking by the shorter-term futures traders is featured to start the trading week. June gold was last up $0.80 at $2,346.20. May silver was last up $0.197 at $27.705.
Broker SP Angel today in an email dispatch said the present gold market rally has “dumfounded” most analysts, given the break from its correlation with U.S. Treasuries, which have sold off over the past month. Also, the U.S. dollar has been stronger and that’s usually bearish for gold and silver. “Central bank buying has been a sustained source of support for gold, with Bloomberg reporting China’s PBOC has added gold for the 17th month in a row,” said the broker, adding this has fueled speculation over a potential devaluation of the Chinese yuan, as well as geopolitical concerns over heightened aggression against Taiwan.
U.S. stock indexes are firmer near midday. Last Friday’s strong U.S. jobs report has the marketplace now reckoning the Federal Reserve will raise U.S. interest rates only twice this year. Reads a Wall Street Journal headline today: “Economic data stir doubts about Fed rate cuts.”
The economic highlights this week will be Wednesday, with the releases of the March consumer price index and the minutes of the last FOMC meeting. Thursday comes the U.S. March producer price index and the European Central Bank monetary policy meeting.
In weekend/overnight news, Israel said it is withdrawing some of its troops from Gaza but said the ground offensive will continue. Ceasefire talks are said to be ongoing.
The key outside markets today see the U.S. dollar index slightly lower. Nymex crude oil prices are weaker and trading around $86.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching around 4.45%.
Technically, June gold futures bulls have the strong overall near-term technical advantage. A seven-week-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $2,400.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,250.00. First resistance is seen at today’s contract high of $2,372.50 and then at $2,385.00. First support is seen at today’s low of $2,321.70 and then at $2,300.00. Wyckoff's Market Rating: 9.0.
May silver futures bulls have the solid overall near-term technical advantage. An accelerating seven-week-old price uptrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $30.00. The next downside price objective for the bears is closing prices below solid support at $26.00. First resistance is seen at today’s high of $28.195 and then at $28.50. Next support is seen at $27.00 and then at $26.40. Wyckoff's Market Rating: 8.5
May N.Y. copper closed up 225 points at 425.85 cents today. Prices closed nearer the session high and hit another 14-month high today. The copper bulls have the solid overall near-term technical advantage. Prices are in a two-month-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 450.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 400.00 cents. First resistance is seen at today’s high of 430.45 cents and then at 435.00 cents. First support is seen at today’s low of 417.25 cents and then at 415.00 cents. Wyckoff's Market Rating: 8.5.
