Gold, silver see near-steady price action, but bulls have momentum

Editor’s Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today’s must-read news and expert opinions. Sign up here!

(Wallace Refiners) – Gold and silver prices are trading not far from unchanged levels in early U.S. trading Tuesday. The metals are pausing after gold prices hit a seven-week high Monday and silver hit a three-week high last Friday. Both markets are in near-term price uptrends and that is inviting new buying interest. June gold futures were last up $1.30 at $1,771.90 and May Comex silver was last up $0.113 at $25.945 an ounce.

Global stock markets were mixed overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins. The U.S. indexes are pausing early this week after hitting record highs last week. There is no major U.S. economic data due for release Tuesday and the pace for U.S. data is slow up until Thursday. Focus of equity traders is presently on quarterly earnings reports, which are expected to be mostly upbeat as the U.S. rolls out of its pandemic-inducted economic slowdown.

In another sign that inflation could become problematic in the coming months, or sooner, SP Angel this morning said in an email dispatch: “U.S. ports are breaking new records for imports as shops and online retailers stock up ahead of new consumer splurge. Volumes at the Port of Los Angeles rose nearly 123%, year-on-year, and also up 65% from 2019. Imports have climbed to high levels driven by Biden’s ‘go big’ stimulus and by consumer exuberance led by the rapid roll out of vaccinations in the U.S.” If such a scenario does indeed play out it would be bullish for hard assets like precious metals and real estate, and bearish for paper assets like stocks and bonds.

The key outside markets today see the U.S. dollar index near steady hitting a six-week low overnight. The greenback bears are in control at present. Nymex crude oil prices are firmer, hit a four-week high overnight, and are trading around $64.00 a barrel. Meantime, the yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.622%–creeping back up this week.

U.S. economic data due for release today is light and includes the weekly Johnson Redbook and Goldman Sachs retail sales reports.

Technically, June gold futures prices have recently seen a bullish upside “breakout” from a trading range. The gold bulls have the slight overall near-term technical advantage for the first time in months. 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 $1,700.00 and then at this week’s high of $1,790.40. First support is seen at $1,760.00 and then at $1,750.00. Wyckoff’s Market Rating: 5.5

The silver bulls have the slight overall near-term technical advantage. A three-week-old price uptrend is in place 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 last week’s high of $26.38 and then at $26.74. Next support is seen at this week’s low of $25.67 and then at $25.38. Wyckoff’s Market Rating: 5.5.