(Kitco News) - Gold and silver prices are solidly higher in early U.S. trading Monday amid improved trader/investor risk sentiment in the general marketplace. June gold was last up $20.50 at $2,329.10. July silver was last up $0.70 at $27.39.
Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed to toward higher openings when the New York day session begins. Risk appetite in the general marketplace has up-ticked the past couple weeks as geopolitical tensions have not escalated and following last Friday’s “Goldilocks” U.S. jobs report that was not too hot and not too cold.
Gold is also seeing underlying support from news reports and analysts notes that remind the marketplace of the better central bank demand for gold seen the past several months. Many in the marketplace think the central banks are the “smart money” in the marketplace.
In overnight news, the Euro zone producer price index for March was down 0.4% from February and down 7.8%, year-on-year.
The key outside markets today see the U.S. dollar index slightly up. Nymex crude oil prices are higher and trading around $79.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is fetching 4.479%.
U.S. economic data due for release Monday includes the employment trends index and the global services purchasing managers index (PMI).
Technically, the gold futures bulls have the overall near-term technical advantage. However, a price downtrend 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 $2,364.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,250.00. First resistance is seen at $2,340.00 and then at $2,350.00. First support is seen at $2,300.00 and then at last week’s low of $2,285.20. Wyckoff's Market Rating: 6.0.
The silver bulls and bears are on a level overall near-term technical playing field. However, a three-week-old price downtrend is still in place on the daily bar chart. Silver bulls' next upside price objective is closing July futures prices above solid technical resistance at $28.00. The next downside price objective for the bears is closing prices below solid support at $26.00. First resistance is seen at $27.50 and then at $27.735. Next support is seen at $27.00 and then at the overnight low of $26.655. Wyckoff's Market Rating: 5.0
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