Gold, Silver See Some Routine Profit Taking From Recent Gains

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May 27, 2021 10:32 NY TimeKitco 10AM Silver Fix

(Kitco News,Thurs. May 27th, 2021) – Gold and silver prices are modestly lower in early morning U.S. trading Thursday, on a normal corrective pullback and some profit-taking by the futures traders. Gold on Wednesday hit a 4.5-month high. Once again, don’t be surprised to see the bulls step in and buy these mild dips in gold and silver prices. June gold futures were last down $3.90 at $1,897.30 and July Comex silver was last down $0.087 at $27.78 an ounce. 

A slew of U.S. economic data released this morning had no significant initial impact on the precious metals markets.

Global stock markets were narrowly mixed or flat overnight. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins. It will be a busy day for U.S. economic data Thursday. The inflation discussion in the marketplace has ebbed a bit this week, as Federal Reserve officials in their comments to the public recently have apparently done a good job of assuaging trader and investors worries about rising prices.

In overnight news, Bloomberg said Thursday in a morning email dispatch that “the period of engagement with China is over for the U.S., replaced by one of competition, according to Kurt Campbell, the U.S. coordinator for Indo-Pacific affairs on the National Security Council.” His comments came amid what were described as candid talks between U.S. Trade Representative Katherine Tai and China’s Vice Premier Liu. President Biden’s call for a deeper investigation into the source of the Covid-19 pandemic highlights the deteriorating U.S.-China relationship. Some have speculated the virus came from a laboratory in Wuhan, China.

Reports say China’s banking regulator, CBIRC, has asked banks to report on their cleaning up of retail investment in commodity linked products. The CBIRC wants to prevent losses but their other agenda is to reduce the speculation which has driven iron ore and other metals prices higher. They also say they want to avoid any big losses by high-profile customers which have bought futures. “When Chinese regulators ask, what they mean is you stop or you might win a holiday to a government-sponsored correctional facility for unpatriotic communists,” said broker SP Angel.

The key outside markets today see the U.S. dollar index slightly lower. Nymex crude oil prices are lower and trading around $65.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.582%.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the second estimate of first-quarter GDP, durable goods orders, pending home sales, and the Kansas City Fed manufacturing survey.

Technically, June gold futures bulls have the solid overall near-term technical advantage amid a seven-week-old price uptrend in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the January high of $1,969.10. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,850.00. First resistance is seen at the overnight high of $1,903.90 and then at this week’s high of $1,913.30. First support is seen at $1,885.00 and then at this week’s low of $1,873.20.

The silver bulls have the firm overall near-term technical advantage amid a seven-week-old price uptrend in place on the daily bar chart. Silver bulls’ next upside price objective is closing July futures prices above solid technical resistance at $30.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $26.78. First resistance is seen at $28.00 and then at this week’s high of $28.34. Next support is seen at this week’s low of $27.545 and then at $27.265. 
Posted by :

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com