Gold, silver sink to multi-month lows amid falling oil, bearish charts

NOTE: To our 401 G.C. readers, today marks a (3) month low for the metals as reported below but do not worry, it is a lot uglier in the stock and bond markets and we see great gains ahead for gold and co. in the weeks and months ahead as record inflation takes over…patience is a virtue and so will be hard assets.

(Kitco News, Tues. May 10th, 2022) – Gold and silver prices are lower in midday U.S. Trading Tuesday, with gold notching a three-month low and silver an eight-month low. Bearish outside markets today that saw a higher U.S. dollar index and lower crude oil prices helped to pressure the precious metals markets. Fully negative near-term technical charts are also fueling the bearish short-term speculative traders. The safe-haven metals have also been punished recently by rising bond yields. The bulls remain perplexed that their metals are ignoring a wobbly U.S. stock market and elevated risk aversion in the overall marketplace due to a major war and rising inflation. June gold futures were last down $13.10 at $1,845.30 and July Comex silver was last down $0.205 at $21.61 an ounce.

U.S. stock indexes are mixed at midday, on corrective rebounds from recent strong selling pressure. The S&P 500 and Nasdaq futures markets hit 12-month lows overnight. The U.S. stock index bears have the solid near-term technical advantage as prices are in downtrends on the daily bar charts. The Russia-Ukraine war, surging Covid cases that have locked down major Chinese cities, and problematic price inflation are an axis of bearish elements that will likely continue to constrain any sustained stock market recoveries.

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The key outside markets today see Nymex crude oil futures prices lower and trading around $99.75 a barrel. Meantime, the U.S. dollar index is higher and not far below this week’s 20-year high. The yield on the 10-year U.S. Treasury note is fetching 2.954%.

Technically, June gold futures prices hit a three-month low today. A two-month-old price downtrend line is in place on the daily bar chart. Bears have the firm overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $1,900.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at today’s high of $1,864.70 and then at $1,875.00. First support is seen at $1,835.00 and then at $1,825.00.

July silver futures prices hit an eight-month low today. A steep price downtrend is in place on the daily bar chart. The silver bears have the solid overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $23.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the December low of $20.00. First resistance is seen at today’s high of $22.085 and then at this week’s high of $22.395. Next support is seen at $21.25 and then at $21.00. Wyckoff’s Market Rating: 1.5.

July N.Y. copper closed down 645 points at 412.90 cents today. Prices closed near the session low today and hit a nearly five-month low. The copper bears have the solid overall near-term technical advantage. A steep price downtrend line is in place on the daily bar chart. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at last week’s high of 444.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the December low of 411.05 cents. First resistance is seen at 420.00 cents and then at today’s high of 425.80 cents. First support is seen at 411.05 cents and then at 407.50 cents.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com