(Kitco News) - Gold and silver prices are higher in early U.S. trading Tuesday amid a weaker U.S. dollar index that dropped to a six-week low overnight. Once gain and somewhat ironically, improved risk appetite in the general marketplace is helping out the safe-haven metals—on ideas of better consumer and commercial demand and lessening inflation due to U.S.-Iran truce talks possibly resuming. June gold was last up $32.40 at $4,799.10. May silver prices were up $1.96 at $77.64.
Latest on the war in the Middle East…
--Fragile ceasefire between U.S., Iran appears to be holding
-- U.S. and Iran weigh further truce talks with U.S. blockade under way
--Trump admin. proposing a 20-year suspension of Iran’s nuclear activity: NYT report
--China’s Xi says world order “crumbling into disarray” as war takes toll
--Switzerland says it’s ready to help in talks to end Iran war
--Global stock markets mostly higher as U.S.-Iran truce talks set to resume
-- China’s oil and gas imports shrink on Persian Gulf turmoil
--WTI crude oil drops below $97 per barrel on signs U.S., Iran may resume talks
China’s Xi weighs in on U.S.-Iran war. Chinese President Xi Jinping lamented a world in “disarray,” using some of his strongest language yet to describe a collapse of the Western-led international order as he vowed to play a constructive role in the Middle East. “The international order is crumbling into disarray,” Xi told Spanish Prime Minister Pedro Sánchez on Tuesday in Beijing, using a Chinese phrase indicating not only chaos but also moral decay, reported Bloomberg. Xi said China would continue to play a constructive role in the Middle East by promoting peace and dialog. “Xi Jinping underscored China’s principled stance of promoting peace and dialog, and reiterated that China would continue to play a constructive role in this regard,” China’s state television cited Xi as saying to Abu Dhabi Crown Prince Sheikh Khaled bin Mohammed during a meeting Tuesday morning in Beijing. The Bloomberg report made no mention any Xi response to President Trump threatening new tariffs on China if it supplies heavy arms to Iran.
Top Gulf oil producers can ramp up to 50% production two weeks after war: IEA. Top Arab Gulf oil producers can return half of shut fields to prewar levels of production within two weeks once transits through the Strait of Hormuz resume, the International Energy Agency said and as reported by Bloomberg. Resumptions are likely to rise to 80% over another month but would be dependent on companies mobilizing labor and contractors, and the normalization of supply chains, the IEA said in its monthly oil market report. Restarting the remaining 20% would be more challenging because of a reduction in pressure in the fields and other constraints, The IEA said Tuesday. “Restoring output most crucially hinges on safe and sustained vessel transit through the Strait of Hormuz, which has become more complicated following a U.S. blockade,” said the report.
The key outside markets see Nymex WTI crude oil prices lower and trading around $97.00 a barrel. The U.S. dollar index is weaker. The yield on the benchmark 10-year U.S. Treasury note is presently 4.28 percent.
Technically, June gold futures bulls’ next upside price objective is to produce a close above solid resistance at $5,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $4,500.00. First resistance is seen at today’s high of $4,820.40 and then at last week’s high of $4,888.00. First support is seen at $4,750.00 and then at $4,700.00. Wyckoff's Market Rating: 6.0.
May silver futures bulls see their next upside price objective is closing prices above solid technical resistance at $80.00. The next downside price objective for the bears is closing prices below solid support at the March low of $61.21. First resistance is seen at $80.00 and then at $82.50. Next support is seen at $75.00 and then at this week’s low of $72.545. Wyckoff's Market Rating: 6.0.
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