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(Wallace Refiners) – Gold and silver prices are trading not far from unchanged levels in early morning U.S. trading Tuesday. Some routine profit taking from the shorter-term futures traders and normal chart consolidation are seen early this week. The bulls continue to enjoy price uptrends in place on the daily charts—suggesting the path of least resistance for prices will remain sideways to higher in the near term. June gold futures were last down $1.00 at $1,883.60 and July Comex silver was last down $0.095 at $27.80 an ounce.
Global stock markets were mixed but mostly firmer overnight. U.S. stock indexes are pointed toward modestly higher openings when the New York day session begins. Trader and investor attitudes are more upbeat this week as inflation worries have subsided, at least for now. Several commodity market prices have backed down from their multi-year highs and Federal Reserve officials in the recent comments appear to be tamping down notions of problematic price inflation. It could be that the marketplace is finally taking heed to the Federal Reserve’s official stance, for some time now, on inflation rising at an accelerating pace recently: it’s only transitory.
In overnight news, the Euro zone got some upbeat economic data when Germany reported its Ifo business index hit its highest reading in two years, at 99.2 versus 96.6 in April.
China’s renminbi currency has hit a three-year high against U.S. dollar on China’s strong economic rebound. The renminbi has gained more than 10% over the past year, driven by China’s solid economic rebound from the Covid-19 pandemic and foreign capital flows into the country.
The key outside markets today see the U.S. dollar index weaker and hitting a 4.5-month low. Meantime, Nymex crude oil prices are higher and are trading around $65.50 a barrel as the market has made a good rebound from last week’s selling pressure. The yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.593%.
U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, the monthly house price index, the S&P-Case-Shiller home price index, the Richmond Fed business survey, the consumer confidence index, and new residential sales.
Technically, June gold futures bulls have the firm overall near-term technical advantage amid a seven-week-old price uptrend in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,900.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at last week’s low of $1,808.40. First resistance is seen at the May high of $1,891.30 and then at $1,900.00. First support is seen at the overnight low of $1,873.20 and then at $1,864.20. Wyckoff’s Market Rating: 7.0
The silver bulls have the firm overall near-term technical advantage amid a seven-week-old price uptrend in place on the daily bar chart. Silver bulls’ next upside price objective is closing July futures prices above solid technical resistance at $30.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $26.78. First resistance is seen at $28.00 and then $28.195. Next support is seen at the overnight low of $27.545 and then at $27.265. Wyckoff’s Market Rating: 6.5.
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