gold, silver see price gains;  The bears seem exhausted

gold, silver see price gains; The bears seem exhausted

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(Kitco News) – Gold and silver prices rose in early US trading on Tuesday, boosted by a rally in crude oil prices that hit a nine-week high today, and sharp daily losses in the US dollar index. Bears in both markets seem to have run out of gas after their recent campaign to the downside. Short coverage in the futures markets featured today. June gold futures rose $18.90 at $1,832.40 last time. Comex silver futures for July rose $0.209 to $21.755 an ounce.

Global stock markets mostly rose overnight. US stock indices are heading for aggressively higher openings when the New York daily session begins. The market was more bullish on Tuesday about reports that China will begin easing lockdowns in major cities, including Hong Kong and Shanghai.

The market will be watching an interview scheduled in the Wall Street Journal with Federal Reserve Chairman Jerome Powell this afternoon. Traders and investors will be keen to see if Powell has indicated aspects of the timing of the Fed’s monetary policy and/or inflation, as well as the possibility of the US economy entering a recession.

In the evening news, the Eurozone economy grew 0.3% in the first quarter and GDP rose 5.1% year over year. These numbers were slightly better than expected.

Today, major overseas markets are seeing stability in NYMEX crude oil futures prices, at a nine-week high and trading around $115.00 a barrel. Meanwhile, the US dollar index fell in early trading. The 10-year US Treasury yield brings in 2.915%.

Tuesday’s busy US economic data day includes Johnson’s Weekly Red Book and retailer reports, retail sales, industrial production and capacity utilization, the NAHB housing market index, and manufacturing and trade inventories.

Technically, the June gold futures bears still have a strong overall technical advantage in the near term but may have run out of gas. There is still a 2-month downtrend on the daily bar chart. The next bullish price target for the bulls is to achieve a close in the June futures contract above the strong resistance at $1,875.00. The next near-term downside price target for the bears is pushing futures prices below strong technical support at this week’s low of $1,785.00. The first resistance is seen at the overnight high at $1,834.80 and then at $1,850.00. The first support is seen at the overnight low at $1,820.90 and then at $1,800.00. Wyckoff Market Rating: 3.0

24 hour silver chart [ Kitco Inc. ]

The sellers of July silver futures contracts have a strong overall technical advantage in the near term. Prices are still in a downtrend on the daily bar chart. The next bullish price target for the silver bulls is to close prices above the strong technical resistance at $23.00 an ounce. The bears’ downtrend price next target is a price close below the strong support level of the May low at $20.42. We see the first resistance at $22.00, then $22.50. Next support appears at the overnight low at $21.56 then $21.00. Wyckoff Market Rating: 2.5.

Not giving an opinion: The opinions expressed in this article are those of the author and may not reflect the opinions of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; However, Kitco Metals Inc. cannot. Nor does the author guarantee this accuracy. This article is for informational purposes only. It is not a solicitation to conduct any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. does not accept The author of this article will be liable for losses and/or damages arising from the use of this publication.

2022-05-17 12:12:00

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