Gold, Silver Rises As USDX Weakens, Crude Oil Bounces Back

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(Kitco News) – Gold and silver prices are up sharply in the US at noon on Tuesday, boosted by short hedging in the futures market and perceived value purchases in the spot market . A rally in the crude oil market after selling pressure on Monday and a weaker US dollar index today are “non-market” upward forces working in favor of the bulls in precious metals. Gold and silver have also seen their short-term technical postures improve a bit recently. June gold futures were up $ 16.50 to $ 1,745.30 and May ExCom silver was up $ 0.53 to $ 25.31 an ounce.

Global equity markets were mixed overnight, with Asian stocks mostly down and European stocks mostly up. US equity indices are mixed at noon, after recent strong gains that have pushed the Dow and S&P 500 indices to record levels this week. The overarching theme dominating the market right now is the optimistic attitude of traders and investors, on ideas that global economies will rebound strongly in the second half of this year as Covid-19 settles down. At least for now, concerns about new waves of the pandemic, huge public spending programs producing problematic inflation and a potentially over-inflated stock market are dismissed.

Major foreign markets are now seeing the US dollar index weaker due to a corrective pullback from recent gains which saw the index hit a five-month high last week. Nymex crude oil prices are solidly higher, trading around $ 60.00 a barrel, after being hammered on Monday amid concerns over energy demand. Meanwhile, the yield on the benchmark 10-year US Treasury bill is currently around 1.7%.

Technically, June’s bearish gold futures still have the overall short-term technical advantage. However, the bulls have gained momentum and greater buying interest this week would confirm a bullish double bottom reversal pattern on the daily bar chart, to suggest that a market bottom is in place. The next bullish price target for the bulls is to produce a close above the solid resistance at $ 1,756.00. The next short-term price drop target for the Bears is to push futures prices under strong technical support at $ 1,700.00. The first resistance is seen at $ 1,750.00 and then at $ 1,756.00. First support is seen at today’s low of $ 1,728.20 and then this week’s low of $ 1,721.60. Wyckoff Market Rating: 3.5

Silver futures bears may have the overall technical advantage in the short term. Prices are in a two month downtrend on the daily bar chart. The next bullish price target for the Silver Bulls is to close the price above strong technical resistance at $ 26.74 an ounce. The next lower price target for the bears is to close the price below strong support at $ 23.00. The first resistance is seen at $ 25.50 and then at $ 26.00. Next support is seen at $ 25.00 and then this week’s low of $ 24.66. Wyckoff Market Rating: 3.5.

May NY copper closed down 225 points at 411.50 cents today. Prices closed near the mid-range today. Copper bulls have the overall firm technical advantage in the short term and have gained strength today. A five week downtrend on the daily bar chart was reversed today. The next bullish price target for copper bulls is to push and close prices above strong technical resistance at the February high of 437.55 cents. The next lower price target for the bears is to close prices under strong technical support at the March low of 384.90 cents. First resistance is seen at this week’s high of 416.00 cents and then at 420.00 cents. First support is seen at today’s low of 407.15 cents and then this week’s low of 402.40 cents. Wyckoff Market Rating: 7.0.