(Kitco News) - Gold and silver prices are higher but down from their overnight highs that saw gold hit a record high of $2,454.20 an ounce, basis June Comex
futures, and silver hit an 11-year high of $32.75 an ounce, basis July Comex futures. Safe-haven demand is featured in both precious metals markets to start the trading week, as geopolitics is back on the front burner. June gold was last up $7.00 at $2,424.10. July silver was last up $0.376 at $31.65.
Risk aversion is elevated as Iranian President Ebrahim Raisi, the country’s foreign minister, and others were killed in a helicopter crash Monday. The crash was in a foggy, mountainous region of the country’s northwest, state media reported. It initially appears the helicopter had mechanical problems and that it was not shot down. Meantime, a Chinese oil tanker was hit by a Houthi missile in the Red Sea, adding to geopolitical tensions.
Reports say Chinese speculators are snapping up gold at a torrid pace and that bullion from the West is moving into China to satisfy the strong demand. It could be that Chinese investors have soured on China’s economic prospects and China financial markets, including the unsteady yuan Chinese currency, and are purchasing safe-haven gold and silver. Chinese real estate investment dropped 9.8%, year-on-year, from January to April.
Broker SP Angel this morning said: “China is struggling to contain the impact of the collapse of two major property developers which have left thousands of unfinished properties in limbo. To compound the problem, many of these apartments have been sold with buyers supporting mortgages on properties they are not able to move into.”
Western speculators are also buying gold, silver and other commodity
futures markets amid ideas the major central banks of the world will be
able to ease their monetary policies in the coming months, which would
spark better global economic growth that would then spur more demand for
raw commodities.
Comex copper futures overnight hit a record high of $5.1990 a pound, basis
the July contract.
Asian and European stock indexes were mostly higher overnight. U.S. stock
indexes are pointed toward slightly higher openings when the New York day
session begins and are not far below last week’s record highs.
The key outside markets today see the U.S. dollar index slightly higher.
Nymex crude oil prices are slightly down and trading around $79.75 a
barrel. The yield on the benchmark 10-year U.S. Treasury note is fetching
4.42%.
There is no major U.S. economic data due for release Monday.
Technically, the gold futures bulls have the solid overall near-term
technical advantage. Bulls’ next upside price objective is to produce a
close in June futures above solid resistance at $2,500.00. Bears' next
near-term downside price objective is pushing futures prices below solid
technical support at $2,350.00. First resistance is seen at the overnight
record high of $2,454.20 and then at $2,465.00. First support is seen at
$2,400.00 and then at Friday’s low of $2,377.80. Wyckoff's Market Rating:
8.5.
The silver bulls have the solid overall near-term technical advantage.
Prices are in a steep three-week-old uptrend on the daily bar chart.
Silver bulls' next upside price objective is closing July futures prices
above solid technical resistance at $33.00. The next downside price
objective for the bears is closing prices below solid support at $30.00.
First resistance is seen at $32.00 and then at $32.50. Next support is
seen at the overnight low of $31.385 and then at $31.00. Wyckoff's Market
Rating: 8.5.
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