(Kitco News) - Gold and silver prices are sharply lower in midday U.S. trading Monday, on profit-taking pressure and weak long liquidation in the futures markets. So far, these are just routine downside price corrections in major bull-market runs. More strong selling pressure this week would become more worrisome for the gold and silver bulls. There has also been a perceived easing of tensions in the Middle East, which is a negative for the safe-haven metals. June gold was last down $64.80 at $2,349.90. May silver was last down $1.534 at $27.305.
Broker SP Angel said today in an email dispatch: “Many gold miners will be forward selling into the new high price levels with the influx of new metal into futures markets likely to temper further price rises. The ability of to secure futures prices of $2,373 an ounce will likely bring in substantial tonnages of gold from miners looking to secure profits in the face of inflation.” Gold prices have been driven higher in recent weeks due in part by a marked rise in trading activity on China’s futures exchanges.
The key outside markets today see the U.S. dollar index a bit firmer. Nymex crude oil prices are slightly down and trading around $82.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is fetching 4.625%.
Technically, June gold futures bulls still have the solid overall near-term technical advantage. A nine-week-old uptrend is still in place on the daily bar chart. So far, this is just a routine downside price correction in an uptrend. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $2,448.50. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,250.00. First resistance is seen at $2,375.00 and then at $2,400.00. First support is seen at today’s low of $2,344.70 and then at $2,337.00. Wyckoff's Market Rating: 7.5.
May silver futures bulls still have the solid overall near-term technical advantage. A two-month-old price uptrend is still in place on the daily bar chart. So far, this is just a normal downside price correction in an uptrend. 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 $28.00 and then at $28.25. Next support is seen at today’s low of $27.155 and then at $27.00. Wyckoff's Market Rating: 7.5.
May N.Y. copper closed down 320 points at 446.55 cents today. Prices closed near the session low after hitting a 22-month high early on 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 460.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 425.00 cents. First resistance is seen at today’s high of 455.05 cents and then at 460.00 cents. First support is seen at 440.00 cents and then at 435.00 cents. Wyckoff's Market Rating: 8.0.
