(Kitco News) - Gold prices are showing gains of over $100 on the day and are at record highs in midday U.S. trading Wednesday. A steady flow of safe-haven demand comes amid geopolitical tensions between the U.S. and China that remain high. Silver prices are posting solid gains. June gold was last up $103.60 at $3,344.00 after hitting a record high of $3,345.00 today. May silver prices were last up $0.573 at $32.88.
Broker SP Angel reports in an email dispatch today the Chinese public and its central bank are snapping up gold. However, a Bank of America survey of fund managers named gold as “the most crowded trade” at present, suggesting too many bullish gold traders may now be on one side of the boat.
U.S. stock indexes are solidly lower near midday. Nvidia stock plunged overnight after the AI chip maker said it’s taking a $5.5 billion charge due to the U.S. likely banning sales of its chips to China. A Barron’s headline today reads: “Nvidia took a bullet. Expect more collateral damage from U.S.-China trade war…”
Reports did say China my be willing to negotiate on trade under specific conditions.
The key outside markets today see the U.S. dollar index solidly lower. Nymex crude oil futures prices are higher and trading around $62.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at around 4.3%.
Technically, June gold futures bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,400.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,150.00. First resistance is seen at the contract high of $3,348.50 and then at $3,375.00. First support is seen at $3,325.00 and then at $3,300.00. Wyckoff's Market Rating: 9.5.
May silver futures bulls have the firm overall near-term technical advantage. Prices are in an uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $34.00. The next downside price objective for the bears is closing prices below solid support at $31.00. First resistance is seen at the overnight high of $33.175 and then at $33.50. Next support is seen at the overnight low of $32.255 and then at $32.00. Wyckoff's Market Rating: 7.0.
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