(Kitco News) – Gold and silver prices are solidly up as trading in the US begins on Monday, on some bargain hunting and amid bullish external market forces that include an index weaker US dollar and slightly firmer crude oil prices. The gold and silver bulls regained the slight technical advantage in the short term. June gold futures were up $ 17.90 to $ 1,785.60 and July ExCom silver was up $ 0.652 to $ 26.53 an ounce.
Global equity markets were mixed overnight, with Asian stocks mostly weaker and European stocks mostly firmer. US stock indices are pointed towards higher openings when today’s New York session begins. U.S. traders and investors are optimistic to start the week of trading, amid recent economic data that generally shows a strengthening in business activity in the United States, and a drop in Covid-19 cases that suggests the pandemic finally loosens its grip on the world’s largest economy.
There was also bullish news from the eurozone on Monday. The region’s April Manufacturing Purchasing Managers Index (PMI) stood at 62.9 after reading 62.5 in March. A number greater than 50.0 suggests growth in the sector.
Major foreign markets are now seeing the US dollar index lower. Nymex crude oil prices are up slightly and trading around $ 64.00 per barrel. Meanwhile, the yield on the benchmark 10-year US Treasury bill is currently 1.646%.
It’s a busy day for U.S. economic data on Monday, including the U.S. Manufacturing Purchasing Managers Index (PMI), ISM Commercial Manufacturing Report, Global Manufacturing PMI, Construction Spending and domestic auto industry sales. Federal Reserve Chairman Jerome Powell is also expected to deliver a speech this afternoon.
Technically, June bulls and gold futures declines are broadly on a technical par for the short term amid recent choppy trading. The next bullish price target is to produce a close above the strong resistance at $ 1,800.00. The next short-term price drop target for the Bears is to push futures prices under strong technical support at $ 1,723.20. First resistance is seen at last week’s high of $ 1,789.90 and then $ 1,800.00. First support is seen at the overnight low of $ 1,765.60, followed by last week’s low of $ 1,754.60. Wyckoff Market Rating: 5.0
Silver bulls have the slight overall technical advantage in the short term. The next bullish price target for Silver Bulls is to close July futures prices above strong technical resistance at $ 27.00 an ounce. The next bearish price target for the bears is to close the price below strong support at $ 25.00. The first resistance is seen at last week’s high of $ 26.58, followed by the April high of $ 26.765. Next support is seen at $ 26.00 and then last week’s low of $ 25.745. Wyckoff Market Rating: 5.5.
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