(Kitco News) – Gold and silver prices are higher on Monday at noon in the United States, with gold hitting an almost four-month high and silver hitting a three-month high. Both precious metals are supported by global stock markets stumbling a bit to start the trading week and as the cryptocurrency markets take a bigger hit. The bullish technical charts for gold and silver also have very confident bulls on the metals at the moment. June gold futures were up $ 29.30 to $ 1,867.50 and July ExCom silver was up $ 0.935 to $ 28.30 an ounce.
Today’s reports indicate that money flows are returning to the SPDR Gold Trust exchange-traded fund – possibly in part due to cryptocurrencies that have become wobbly recently.
Global equity markets were for the most part weaker overnight. US stock indices are lower at noon. Discussion in the market continues on whether inflationary pressures will rise to levels that will create economic hardship in the future. The line coming from the Federal Reserve right now is that rising inflation is only a “transitional” matter. However, other economists and market analysts say inflation cannot help but become problematic in the coming months and point out that strong evidence is already in place, including the general rise in raw material prices. History shows that price inflation which becomes problematic is bullish for the metals markets.
In overnight news, China released more generally strong economic data on Monday, as industrial production rose 9.8% in April, year-over-year, while retail sales were up 17.7% over the period. Retail sales were lower than expected. These numbers from the world’s second largest economy certainly land in the high inflation camp.
Major foreign markets are now seeing the US dollar index weaker. Meanwhile, Nymex crude oil prices are higher and are trading around $ 66.25 per barrel. The yield on the benchmark 10-year US Treasury bill is currently around 1.625%.
Technically, June gold futures prices have returned above the key 200-day moving average. Gold bulls have the overall firm technical advantage in the short term and have gained more power today. A seven week old price uptrend is in place on the daily bar chart. The next bullish price target is to produce a close above the strong resistance at $ 1,900.00. The next short-term price drop target for Bears is to push futures prices under strong technical support at $ 1,800.00. The first resistance is seen at $ 1,875.00 and then at $ 1,881.00. First support is seen at $ 1,850.00 and then the current low of $ 1,841.10. Wyckoff Market Rating: 7.0
July silver futures prices hit a three-month high today. Silver bulls have the overall technical advantage in the short term. A seven week uptrend is in place on the daily bar chart. The next bullish price target for Silver Bulls is to close prices above strong technical resistance at the February high of $ 30.015 an ounce. The next lower price target for the bears is to close prices below solid support at last week’s low of $ 26.78. The first resistance is seen at $ 28.50 and then at $ 29.00. The next support is seen at $ 28.00 and then at the current low of $ 27.44. Wyckoff Market Rating: 7.0.
July NY copper closed 545 points higher at 470.95 cents today. Prices closed near the session high today. Copper bulls have the strong overall technical advantage in the short term. The next bullish price target for copper bulls is to push and close the price above the strong technical resistance at 500.00 cents. The next lower price target for the bears is to close the price below strong technical support at 442.00 cents. First resistance is seen at 475.00 cents and then 480.00 cents. First support is seen at 460.60 and then 455.00 cents. Wyckoff Market Rating: 8.5.
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