(Kitco News) - Gold prices are trading just slightly lower Thursday morning after hitting a record high of $3,371.90, basis June Comex futures, in overnight trading. Risk aversion in the general marketplace remains elevated, which continues to drive safe-haven demand for gold and silver. Silver prices are lower early today. June gold was last down $5.30 at $3,341.10. May silver prices were last down $0.655 at $32.325.
Asian and European stock markets were mixed in overnight trading, with Asian shares mostly firmer and European shares mostly weaker. U.S. stock indexes are pointed to mostly higher openings today in New York.
The marketplace is still buzzing about Federal Reserve Chairman Jerome Powell’s speech in Chicago Wednesday afternoon, where he leaned hawkish in his comments, including saying trade tariffs could produce higher inflation and higher unemployment. Powell also indicated he is worried about stagflation, which is sticky inflation and slower economic growth. U.S. stock markets sold off after Powell’s remarks. President Trump posted on his social media account that Powell’s comments were a complete mess and that Powell should be terminated.
The European Central Bank is holding its regular monetary policy meeting today and is expected to cut its main interest rate by 0.25%.
The key outside markets today see the U.S. dollar index firmer. Nymex crude oil futures prices are firmer and trading around $63.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.31%.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the Philadelphia Fed business survey, and new residential construction.
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 $3,500.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,200.00. First resistance is seen at the overnight contract high of $3,371.90 and then at $3,400.00. First support is seen at the overnight low of $3,325.50 and then at $3,300.00. Wyckoff's Market Rating: 9.0.
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 $33.00 and then at this week’s high of $33.175. Next support is seen at $32.00 and then at this week’s low of $31.655. Wyckoff's Market Rating: 6.5.
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