Mild price gains for gold on short covering, bargain hunting

(Kitco News, Wed. June 1st, 2022) – Gold prices are up a bit in early U.S. trading Wednesday and have erased moderate overnight losses. Short covering in the futures market and some bargain buying in the cash market are featured at mid-week. U.S. Treasury bond yields have backed down slightly today, which is also slightly friendly for the precious metals markets. August gold futures were last up $1.00 at $1,849.50. July Comex silver futures were last up $0.197 at $21.885 an ounce.

Global stock markets were mostly lower overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. Traders and investors are still exhibiting some risk aversion amid the Russia-Ukraine war that is in its third month, as well as problematic global inflation and the prospect of a U.S. economic recession.

The key outside markets today see Nymex crude oil prices higher and trading around $116 a barrel. The U.S. dollar index is higher in early trading. The yield on the 10-year U.S. Treasury note is fetching 2.869%.

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U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the weekly Johnson Redbook and chain store retail reports, the U.S. manufacturing PMI, the ISM report on business manufacturing, construction spending, the global manufacturing PMI, the Federal Reserve’s beige book, and domestic auto industry sales.

Technically, the August gold futures bears have the overall near-term technical advantage. A 2.5-month-old downtrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at $1,900.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the May low of $1,785.00. First resistance is seen at today’s high of $1,840.90 and then at $1,850.00. First support is seen at the overnight low of $1,830.20 and then at $1,825.00. Wyckoff’s Market Rating: 3.0

July silver futures bears have the overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $23.50 an ounce. The next downside price objective for the bears is closing prices below solid support at the May low of $20.42. First resistance is seen at $22.00 and then at last week’s high of $22.475. Next support is seen at today’s low of $21.41 and then at $21.25.

Posted by :

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com