(Kitco News) - Gold prices are strongly up at midday and today hit a record high of $3,442.30, basis June Comex futures. Risk aversion in the general marketplace is keen, which continues to drive safe-haven demand for gold and to a lesser degree silver. June gold was last up $98.00 at $3,426.40. May silver prices were last up $0.165 at $32.63.
Another steep downdraft in the U.S. stock market today is helping to drive the safe-haven buying in gold. Asian and European stock markets were mostly lower in overnight trading. Reads a Wall Street Journal headline today: U.S.-China brace for cold war as tensions heat up.” The story says, “The current scenario was once unthinkable.”
Adding to the general marketplace anxiety is President Trump browbeating Federal Reserve Chairman Powell today, saying on social media the Fed needs to lower U.S. interest rates immediately.
Importantly, these much bigger daily price moves in gold are one early clue this very mature bull market run in the yellow metal is close to climaxing and that a near-term market top may be close at hand, from a time perspective, more so that a price perspective. Still, the speculative bears would be fools to stand in front of this steaming locomotive.
The key outside markets today see the U.S. dollar index sharply lower and hitting a three-year low. Nymex crude oil futures prices are lower and trading around $63.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.37%.
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 $3,250.00. First resistance is seen at the contract high of $3,442.30 and then at $3,450.00. First support is seen at $3,400.00 and then at the overnight low of $3,344.00. 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 last week’s high of $33.175 and then at $33.50. Next support is seen at the overnight low of $32.385 and then at $32.00. Wyckoff's Market Rating: 7.0.
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