(Kitco News) – Gold prices widen sharply at the start of US trading on Monday, as the global market saw its trend increase during trading week, according to reports that the coronavirus epidemic could worsen defuse. This somewhat encouraging news seems to be a scenario of gold caps for gold, as buyers are more confident to intervene and buy the safe haven metal, while knowing that there are still very difficult times to come on, including the specter of problematic inflation further. June gold futures were up $ 24.00 an ounce to $ 1,670.00.
Global stock markets were mostly higher in day-to-day trading. The US stock market indices are oriented towards significantly higher openings at the start of the New York session. The coronavirus epidemic that has crippled the global economy seems to be fading a bit, according to some models that predict the maximum number of cases and deaths. However, the week ahead is going to be “our time in Pearl Harbor, our time in September 11,” said American surgeon general Jerome Adams, regarding an expected wave of deaths from coronavirus in the United States in New York, the epicenter American Covid-19, New Orleans and Detroit are facing particularly difficult days.
The debate in the coming days, especially if the Covid-19 surge begins to subside, will be when to restart the global economies. Traders and investors are also handicapped, so global economies will resume full speed when they seriously restart. There are complex supply chains that have been severely disrupted in recent weeks.
Reports indicate that the US Treasury and short-term securities markets are performing better than a few weeks ago, following the massive injection of liquidity from the Federal Reserve into these markets.
Major foreign markets are now seeing lower Nymex crude oil prices trading around $ 27.50 a barrel. There are reports that Russia and Saudi Arabia are close to a deal to cut their crude oil production levels following pressure from President Trump to do so. OPEC officials were scheduled to meet today via conference call to discuss production cuts, but the meeting was postponed until Thursday. The US dollar index was slightly higher this morning as the bulls regained power. The yield on 10-year US Treasuries is trading around 0.65% Monday morning, up from Friday’s levels. Gold prices are significantly higher.
US economic data due for release on Monday includes the employment trend index.
Technically, gold bulls have the overall solid short-term technical advantage. Bulls’ next bullish target is to produce a close in June on resistance above $ 1,700.00. Bears’ next short-term price cut target pushes futures prices under solid technical support to $ 1,625.00. The first resistance is observed at the night’s high at $ 1,673.00, then at $ 1,675.00. The first support is seen at $ 1,650.00 and then overnight low at $ 1,638.20. Wyckoff Market Assessment: 7.5
That bulls and bear futures on silver are on an overall level of technical equality in the short term. The next target for higher silver bull prices is to close prices above solid technical resistance at $ 15.00 an ounce. The next price break goal for bears is to close prices below solid support at $ 13.00. The first resistance is observed at $ 15.00 then at $ 15.20. The next support is seen at the night low of $ 14,355 then at $ 14.00. Wyckoff Market Assessment: 5.0.