Gold, silver see corrective pullbacks in fledgling price uptrends

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(Wallace Refiners) – Gold and silver prices are lower in midday U.S. trading Monday, on routine downside corrections after gold prices hit a seven-week high overnight and silver hit a three-week high Friday. Both metals are now in near-term price uptrends and that will continue to invite fresh buying interest from the shorter-term technical traders. A slumping U.S. dollar on the foreign exchange market and the recent surge in crude oil prices will also continue to work in favor of the metals market bulls. June gold futures were last down $8.60 at $1,771.60 and May Comex silver was last down $0.33 at $25.775 an ounce.

Gold prices saw overnight support on reports late last week the Chinese government will allow domestic and foreign banks to import larger amounts of the precious metal into China. Such could also lead to more consumer demand for gold from China, already a major gold importer for consumers.

Global stock markets were mixed overnight. U.S. stock indexes are pointed lower at midday on a pause after hitting record highs last week. It’s a quieter start to the trading week. There was no major U.S. economic data released Monday and the pace for U.S. data is slow up until Thursday.

The key outside markets today see the U.S. dollar index down and hitting a six-week low. The greenback bulls are presently reeling. Nymex crude oil prices are near steady and trading around $63.25 a barrel. Meantime, the yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.562%, continuing to slip from highs seen earlier in April.

Technically, June gold futures bulls have the slight overall near-term technical playing field as prices are in a fledgling uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at last week’s low of $1,723.20. First resistance is seen at today’s high of $1,790.40 and then at $1,800.00. First support is seen at Friday’s low of $1,760.30 and then at $1,750.00. Wyckoff’s Market Rating: 5.5

May silver futures prices also pulled back after prices hit a three-week high Friday. The silver bulls have the slight overall near-term technical advantage. Prices are in a fledgling uptrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $27.00 an ounce. The next downside price objective for the bears is closing prices below solid support at last week’s low of $24.68. First resistance is seen at $26.00 and then at last week’s high of $26.38. Next support is seen at today’s low of $25.38 and then at $25.00. Wyckoff’s Market Rating: 5.5.

May N.Y. copper closed up 745 points at 424.25 cents today. Prices closed nearer the session high today and hit a six-week high. Prices also scored a bullish “outside day” up. The copper bulls have the solid overall near-term technical advantage. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the February high of 437.55 cents. The next downside price objective for the bears is closing prices below solid technical support at the April low of 394.35 cents. First resistance is seen at today’s high of 427.70 cents and then at 430.00 cents. First support is seen at 420.00 cents and then at today’s low of 415.20 cents. Wyckoff’s Market Rating: 8.0.