(Kitco News) - Gold and silver prices are firmly higher in midday U.S. trading Wednesday. Traders and investors are doing some would-be bargain hunting. A rebound in crude oil prices today and a dip in U.S. Treasury yields this week are bullish “outside market” elements supporting the precious metals markets at mid-week. August gold was last up $25.50 at $2,373.20. July silver was last up $0.448 at $30.055.
Today’s ADP national employment report for May showed a rise of 152,000 versus expectations for up 175,000. The weaker-than-expected ADP report was also a supportive factor for the rally in gold and silver markets today.
The marketplace, including metals traders, awaits U.S. data point of the week, if not the month, with Friday’s May employment situation report from the Labor Department. The key non-farm payrolls number is seen coming in at up 178,000 versus the April report showing a gain of 175,000 jobs.
Investors and traders are also anticipating Thursday’s European Central Bank (ECB) meeting. The expectation is that the ECB will get ahead of the central-bank pack and cut its main interest rate by 25 basis points.
The key outside markets today see the U.S. dollar index firmer. Nymex crude oil prices are up and trading around $74.00 a barrel. The benchmark 10-year U.S. Treasury note yield is presently around 4.25%.
Technically, August gold bulls have the overall near-term technical advantage. However, a bearish double-top reversal pattern has formed on the daily bar chart to suggest a near-term market top is in place. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $2,477.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the May low of $2,308.70. First resistance is seen at last week’s high of $2,388.00 and then at $2,400.00. First support is seen at $2,350.00 and then at this week’s low of $2,334.80. Wyckoff's Market Rating: 6.5.
July silver futures bulls have the overall near-term technical advantage. However, a four-week-old uptrend on the daily bar chart has been negated to suggest a near-term market top is in place. Silver bulls' next upside price objective is closing prices above solid technical resistance at the May high of $32.75. The next downside price objective for the bears is closing prices below solid support at $28.00. First resistance is seen at $30.50 and then at $31.00. Next support is seen at this week’s low of $29.505 and then at $29.00. Wyckoff's Market Rating: 6.5.
(Hey! My “Markets Front Burner” weekly email report is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. Plus, I’ll throw in an educational feature to move you up the ladder of trading/investing success. And it’s free! Email me at jim@jimwyckoff.com and I’ll add your email address to my Front Burner list.)
