Gold, silver see modest selling on price corrections

(Kitco News, Tues. May 7th, 2024 ) – Gold and silver prices are a bit lower in early U.S. trading Tuesday, on corrective pullbacks after Monday’s decent gains. A firmer U.S. dollar index and weaker crude oil prices on this day are mildly bearish “outside-market” forces working against the precious metals market bulls. June gold was last down $7.80 at $2,323.40. July silver was last down $0.089 at $27.525.

Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed to toward mixed openings when the New York day session begins. The U.S. stock index bulls have regained some upside momentum the past few sessions.

Risk appetite has receded a bit Tuesday after Israel said it had taken control of part of the southern city of Rafah in the Gaza strip near the Egyptian border. The stepped-up Israeli military operations in Gaza come as there had been better hopes a ceasefire between Israel and Hamas might be imminent.

In overnight news, Australia’s central bank left its monetary policy unchanged at its regular meeting. The RBA said that while inflation is easing, it’s easing more slowly than expected and it will be some time before inflation is in the RBA’s target zone.

The key outside markets today see the U.S. dollar index higher. Nymex crude oil prices are slightly down and trading around $78.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is fetching 4.465%.

U.S. economic data due for release Tuesday includes the weekly Johnson Redbook retail sales report, the RCM/TIPP economic optimism index and consumer credit.

Technically, the gold futures bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at $2,400.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,250.00. First resistance is seen at this week’s high of $2,341.90 and then at $2,350.00. First support is seen at $2,315.00 and then at $2,300.00.

The silver bulls have the slight overall near-term technical advantage. Silver bulls’ next upside price objective is closing July futures prices above solid technical resistance at $29.00. The next downside price objective for the bears is closing prices below solid support at last week’s low of $26.255. First resistance is seen at the overnight high of $27.75 and then at $28.00. Next support is seen at $27.25 and then at $27.00.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com