(Kitco News) - Gold and silver prices are higher at midday 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, especially from China, as geopolitics is back on the front burner. June gold was last up $11.10 at $2,428.50. July silver was last up $0.876 at $32.125.
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. U.S. stock indexes are mixed at midday 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
4.445%.
There was no major U.S. economic data released Monday.
Technically, June gold futures bulls have the solid overall near-term
technical advantage. 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
$2,350.00. First resistance is seen at today’s record high of $2,454.20
and then at $2,465.00. First support is seen at today’s low of $2,411.10
and then at $2,400.00. Wyckoff's Market Rating: 8.5.
July silver futures 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 prices above
solid technical resistance at $35.00. The next downside price objective
for the bears is closing prices below solid support at $30.00. First
resistance is seen at today’s high of $32.75 and then at $33.00. Next
support is seen at today’s low of $31.18 and then at $31.00. Wyckoff's
Market Rating: 8.5.
July N.Y. copper closed up 125 points at 506.10 cents today. Prices closed
nearer the session low and hit a record high of 519.90 cents early on
today. The copper bulls have a solid overall near-term technical
advantage. Prices are in a 3.5-month-old uptrend on the daily bar chart.
Copper bulls' next upside price objective is pushing and closing prices
above solid technical resistance at 550.00 cents. The next downside price
objective for the bears is closing prices below solid technical support at
460.00 cents. First resistance is seen at today’s high of 519.00 cents and
then at 525.00 cents. First support is seen at 500.00 cents and then at
490.00 cents. Wyckoff's Market Rating: 8.5
