(Kitco News) - Gold prices are down and losing altitude at midday and have lost solid early gains that saw the market hit another record high of $3,509.90, basis June Comex futures. Profit taking from the shorter-term futures traders is featured, much of which is prompted by a solid rebound in the U.S. stock indexes today. Silver prices are solidly up at midday. June gold was last down $16.30 at $3,409.00. May silver prices were last up $0.534 at $33.045.
The U.S. stock indexes posted a strong rally today when reports surfaced that the U.S. Treasury secretary said the U.S.-China trade impasse is not tenable and is likely to de-escalate.
Importantly, these recent much bigger daily price moves in gold are one early clue this very mature bull market run 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 solidly up on a rebound after hitting a three-year low Monday. Nymex crude oil futures prices are solidly higher and trading around $65.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.375%and his dipped a bit today.
Technically, June gold futures bulls have the solid overall near-term technical advantage but today’s price action hints they may be exhausted. Bulls’ next upside price objective is to produce a close above solid resistance at today’s contract high of $3,509.90. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,200.00. First resistance is seen at $3,550.00 and then at the contract high of $3,509.90. First support is seen at $3,375.00 and then at this week’s low of $3,344.00. Wyckoff's Market Rating: 8.5.
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 $32.255 and then at $32.00. Wyckoff's Market Rating: 6.5.
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