(Kitco News) - Gold futures prices are posting losses of over $100 in early U.S. trading Thursday, as risk appetite has markedly improved in the general marketplace late this week. Profit taking and weak long liquidation from the shorter-term futures traders are featured. Silver prices are solidly down. A steep drop in crude oil prices this week is a bearish weight on most commodity markets, including the precious metals. June gold was last down $105.60 at $3,213.20. May silver prices were last down $0.896 at $31.635.
Many Asian and European stock markets were closed for the May Day holiday. U.S. stock indexes are pointed to solidly higher openings today in New York. Risk appetite is keener late this week, following some better-than-expected U.S. corporate earnings reports that were released the past couple days. Also, the Trump administration is hinting that new trade deals with other countries are close at hand. Chinese media is reporting the U.S. has reached out to China to discuss trade.
The next big U.S. data point is Friday morning’s U.S. jobs report for April from the Labor Department. That report may be the most important U.S. data point so far this year. The key non-farm payrolls number is seen coming in at up 133,000 versus a gain of 228,000 in the March report.
The key outside markets today and see the U.S. dollar index higher. Nymex crude oil futures prices are lower, hit at three-week low and trading around $56.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.137%.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the Challenger job-cuts report, the U.S. manufacturing PMI, the ISM report on business manufacturing, construction spending and domestic auto industry sales.
Technically, June gold futures bulls have the overall near-term technical advantage but are fading. Bulls’ next upside price objective is to produce a close above solid resistance at $3,350.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,100.00. First resistance is seen at $3,250.00 and then at $3,300.00. First support is seen at $3,200.00 and then at $3,175.00. Wyckoff's Market Rating: 6.5.
May silver futures bulls have the slight overall near-term technical advantage but are fading. A price uptrend on the daily bar chart has been negated. Silver bulls' next upside price objective is closing prices above solid technical resistance at this week’s high of $33.69. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen at $32.00 and then at the overnight high of $32.555. Next support is seen at $31.50 and then at $31.00. Wyckoff's Market Rating: 5.5.
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