(Kitco News) - Gold prices are sharply up in early U.S. trading Thursday, on a corrective bounce from Wednesday’s strong losses. Bulls stepped in to buy the big dip as the global stock and financial markets appear to be pausing at present, waiting for the next shoe to drop on the world trade front. June gold was last up $57.00 at $3,351.10. May silver prices were last down $0.032 at $33.515.
Asian and European stock markets were mixed in overnight trading. U.S. stock indexes are pointed to slightly lower openings today in New York, following Tuesday’s and Wednesday’s solid gains. The stock indexes are taking a breather today, following the big up-moves amid improved investor risk appetite in the general marketplace. There may be a slight thawing in U.S.-China trade relations, following comments from Trump and his administration officials this week. A Wall Street Journal headline today reads: “China bets Trump will back down on tariffs.”
In overnight news, China said it will inject liquidity into its financial system on Friday, which means it’s slightly easing its monetary policy.
The key outside markets today and see the U.S. dollar index solidly lower. Nymex crude oil futures prices are higher and trading around $63.00 a barrel. Reports say OPEC is considering raising crude oil production levels in June. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.36%.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the Chicago Fed national activity index, durable goods orders, the Kansas City Fed manufacturing survey, and existing home sales.
Technically, June gold futures bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the 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 the overnight high of $3,377.00 and then at $3,400.00. First support is seen at $3,325.00 and then at $3,300.00. Wyckoff's Market Rating: 7.5.
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 $35.00. The next downside price objective for the bears is closing prices below solid support at $32.00. First resistance is seen at this week’s high of $33.675 and then at $32.00. Next support is seen at $33.00 and then at $32.50. Wyckoff's Market Rating: 7.0.
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