(Kitco News) - Gold prices are solidly up and hit another record high of $3,509.90, basis June Comex futures, in early U.S. trading. Keen risk aversion in the general marketplace continues to drive safe-haven demand for gold. Silver prices are just modestly up and somewhat surprisingly not following gold’s recent strong gains. June gold was last up $45.60 at $3,470.90. May silver prices were last up $0.184 at $32.705.
Markets are still on edge after President Trump berated Federal Reserve Chairman Jerome Powell in a series of social media posts Monday morning. “Traders had to digest the fallout from Trump’s sharp criticism of the Federal Reserve and the personal attack on the Fed Chair. They are now braced for more volatility ahead of earnings and central bank commentary. The move across global stock indices appears more reflective of consolidation than panic, but markets remain on edge,” said David Morrison with Trade Nation. He added Monday’s stock market sell-off “reflected growing market concern over the deteriorating relationship between the White House and the central bank. Mr. Powell’s second term as Fed Chair runs through to next year, and it’s widely understood that the president doesn’t have the authority to sack him. However, some are speculating that Mr. Trump’s antagonistic attitude may persuade Mr. Powell to stand down early. If he did, the market reaction seems likely to be extremely negative. This all comes on the back of Jerome Powell’s hawkish and downbeat message last week, where he highlighted the ongoing tariff situation as clouding the picture when it comes to easing monetary policy further.”
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.
Asian and European stock markets were mixed in overnight trading. U.S. stock indexes are pointed to higher openings today in New York, following Monday’s shellacking. Reads a Wall Street Journal headline today: “Dow nears worst April since 1932.”
The key outside markets today see the U.S. dollar index up a bit on a rebound after hitting a three-year low Monday. Nymex crude oil futures prices are higher and trading around $64.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.42%.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook retail sales report, the IMF world economic outlook, and the Richmond Fed business survey.
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 $3,600.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,300.00. First resistance is seen at the overnight contract high of $3,509.90 and then at $3,525.00. First support is seen at the overnight low of $3,423.90 and then at $3,400.00. 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 $32.255 and then at $32.00. 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! Sign up here; it’s real easy. https://www.kitco.com/services
