(Kitco News) - Gold prices are moderately higher and silver prices lower in midday U.S. trading Tuesday. Gold is seeing more safe-haven buying, while silver is seeing some routine profit-taking pressure from the shorter-term futures traders. The general marketplace remains on edge amid heightened geopolitics. June gold was last up $15.80 at $2,398.80. May silver was last down $0.402 at $28.315.
Risk aversion remains elevated Tuesday, following last weekend’s Iranian air attacks on Israel. Israel’s military chief said Israel will retaliate, despite U.S. warnings to Israel that the U.S. won’t participate in any retaliation. NBC reports that an Israeli military response to Iran’s attack is imminent. At present, the general marketplace appears to be taking any Israeli retaliation lightly, as markets are not seeing keen risk aversion or stronger moves into safe-haven assets. This full-time 40-year markets watcher thinks the marketplace is presently dead wrong regarding thinking the Israel-Iran conflict will not escalate significantly. It seems to me that Israel finally has its good excuse to take out or seriously degrade Iran’s military and its nuclear weapons capability. Iran has vowed in the past to destroy Israel.
Many precious metals markets watchers are wondering when economic fundamentals will come back into front-burner play for gold and silver—namely recent U.S. economic data that has been upbeat and falls into the camp of the U.S. monetary policy hawks, who do not want to see the Federal Reserve cut interest rates. Such is a bearish element for the precious metals. The answer to this question is that geopolitical tensions will continue to trump economic fundamentals until the tensions ease and the keener uncertainty regarding geopolitics wanes. That could be a while. However, it is likely the stronger U.S. data recently has somewhat limited buying interest in the precious metals.
The key outside markets today see the U.S. dollar index slightly higher. Nymex crude oil prices are near steady and trading around $85.40 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 4.657%.
Technically, June gold futures bulls have the strong overall near-term technical advantage. A two-month-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $2,500.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,300.00. First resistance is seen at today’s high of $2,409.80 and then at $2,425.00. First support is seen at today’s low of $2,379.20 and then at $2,365.00. Wyckoff's Market Rating: 9.0.
May silver futures bulls have the strong overall near-term technical advantage. A two-month-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 $29.10 and then at $29.50. Next support is seen at $28.00 and then at this week’s low of $27.665. Wyckoff's Market Rating: 8.5.
May N.Y. copper closed down 750 points at 430.40 cents today. Prices closed nearer the session low on profit taking after hitting a 14-month high Monday. The copper bulls still 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 415.00 cents. First resistance is seen at this week’s high of 439.65 cents and then at 445.00 cents. First support is seen at this week’s low of 427.05 cents and then at 420.00 cents. Wyckoff's Market Rating: 8.0.
