(Kitco News) – Gold futures prices are trading higher and scored a 7.5-year high in midday U.S. trading Monday. Bullish traders, who are enjoying a strong technical posture in their metal, stepped in to buy the early weakness today, knowing the path of least resistance for prices remains sideways to higher. A sell off today in the U.S. stock market is also on this day working in favor of the safe-haven gold market. June gold futures were last up $5.30 an ounce at $1,758.30. May Comex silver prices were last down $0.428 at $15.625 an ounce.
The silver market today is acting more like an industrial metal and is under selling pressure, along with the global equities markets.
Global stock markets were mixed to weaker in overnight trading. The U.S. stock indexes, while seeing some pressure today, have seen near-term price uptrends develop, which suggest at least near-term lows are in place. While the Covid-19 pandemic continues to kill thousands worldwide, the rate of the spread of the illness is slowing in the U.S. and Europe. The major debate among North Americans and Europeans is, if the curve of infections continues to flatten when will governments begin to start up their heavily damaged economies. May 1 has been mentioned frequently as a “rolling start” date for the U.S. economy. Still, at present that timeframe seems to be a best-case scenario.
Reports said the U.S. Treasury on Saturday began distributing stimulus funds to American taxpayers.
Over the weekend, the OPEC oil cartel, Russia, the U.S. and other oil-producing nations agreed to a collective oil production cut of around 13%, which amounts to 9.7 million barrels per day. The oil futures markets had pretty much already factored into their prices the cut and were only modestly up Monday. Nymex crude oil prices were trading around $23.00 a barrel.
Other important markets see the U.S. dollar index lower at midday. The 10-year U.S. Treasury note yield is trading around 0.73% Thursday morning.
There were no major U.S. economic reports out Monday.
Technically, June gold futures bulls have the strong overall near-term technical advantage. More upside is likely in the near term. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,800.00. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at $1,675.00. First resistance is seen at today’s high of $1,761.70 and then at $1,775.00. First support is seen at $1,742.60 and then at today’s low of $1,724.20. Wyckoff’s Market Rating: 9.0
May silver futures prices last Thursday hit a four-week high. The silver bulls have the overall near-term technical advantage. Prices are in a three-week-old uptrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.50. First resistance is seen at $16.00 and then at last week’s high of $16.09. Next support is seen at today’s low of $15.385 and then at $15.25. Wyckoff’s Market Rating: 6.0.
May N.Y. copper closed up 570 points at 231.65 cents today. Prices closed near mid-range and hit a four-week high today. The copper bulls have gained the slight overall near-term technical advantage. A price uptrend is in place on the daily bar chart. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 250.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 220.00 cents. First resistance is seen at today’s high of 235.25 cents and then at 238.00 cents. First support is seen at today’s low of 226.35 and then at 225.00 cents. Wyckoff’s Market Rating: 5.5.
Author: Jim Wyckoff