(Kitco News) - Gold and silver prices are slightly higher in midday U.S. trading Monday. Trading is quieter to start the work week, as market participants are bracing for a very busy week for big U.S. economic data that will almost surely significantly move the markets. June gold was last up $2.90 at $2,350.10. May silver was last up $0.028 at $27.82.
This week’s U.S. data highlights include the Federal Reserve’s Open Market Committee meeting that begins Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chair Jerome Powell. No changes in monetary policy are expected, but the FOMC statement and Powell’s presser will be very closely scrutinized by the marketplace. Recent warmer U.S. inflation data has prompted traders and analysts to dial back their timelines on interest rate cuts from the Fed, if they come at all this year. Former Fed official Roger Ferguson said on CNBC today that he expects Powell to sound a hawkish tone this week. A Wall Street Journal headline today reads: “High rates appear on track to persist long term.” On Friday morning comes the U.S. jobs report from the Labor Department.
U.S. stock indexes are slightly up at midday. Risk aversion in the general marketplace has receded the past couple weeks. The U.S. stock index bulls have stabilized their markets the past week, after they spent three weeks trending down. Still, veteran stock market watchers know the old saying, “Sell in May and go away” until after Labor Day.
The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are down and trading around $83.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is fetching around 4.64%.
Technically, June gold futures bulls have the firm overall near-term technical advantage. They are keeping alive a 2.5-month-old uptrend on the daily bar chart. A minor bear flag pattern has formed 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 last Friday’s high of $2,364.40 and then at $2,375.00. First support is seen at today’s low of $2,331.00 and then at $2,316.40. Wyckoff's Market Rating: 7.0.
May silver futures bulls have the firm overall near-term technical advantage. A two-month-old price uptrend on the daily bar chart is still alive. Silver bulls' next upside price objective is closing prices above solid technical resistance at $29.00. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at last Friday’s high of $27.745 and then at $28.00. Next support is seen at today’s low of $26.96 and then at last week’s low of $26.715. Wyckoff's Market Rating: 7.0
May N.Y. copper closed up 745 points at 463.85 cents today. Prices closed nearer the session high today and hit a two-year high. The copper bulls have the solid overall near-term technical advantage. Prices are in a 2.5-month-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 475.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 430.00 cents. First resistance is seen at 465.00 cents and then at 470.00 cents. First support is seen at today’s low of 456.25 cents and then at 450.00 cents. Wyckoff's Market Rating: 8.5.
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