Price Gains For Gold, Silver, Amid Bullish Technicals

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closes in 5 hrs. 2 mins.May 26, 2021 11:58 NY Time

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May 26, 2021 11:58 NY TimeKitco 10AM Silver Fix

(Kitco News, We’d. May 26th, 2021)– Gold and silver prices are higher in early morning U.S. trading Wednesday, with gold notching a fresh 4.5-month high and moving above what was psychological resistance at the $1,900.00 level. Charts that are bullish and getting more so are keeping money flowing to the long side of these precious metals markets at mid-week. A U.S. dollar that is still in a funk and crude oil prices not far below this year’s highs are bullish outside elements also supporting the metals markets. June gold futures were last up $10.50 at $1,908.60 and July Comex silver was last up $0.179 at $28.235 an ounce. 

Global stock markets were mixed but mostly firmer overnight. U.S. stock indexes are pointed toward modestly higher openings when the New York day session begins. Discussion in the marketplace continues on the recent acceleration of inflationary price pressures and what the Federal Reserve and other central banks plan to do about it. The Fed says rising inflation is “transitory,” but many markets’ price actions suggest otherwise. Traders today will closely scrutinize comments from Federal Reserve vice chair for supervision Randal Quarles, scheduled to give a speech today. Meantime, a European Central Bank official Wednesday said the ECB has no plans to scale back its bond-buying program (quantitative easing) anytime soon.

Featured overnight is the New Zealand dollar gaining 1% against the U.S. dollar after New Zealand’s central bank hinted it could raise interest rates late next year.

The key outside markets today see the U.S. dollar index firmer on a corrective bounce after hitting a 4.5-month low Tuesday. Meantime, Nymex crude oil prices are slightly lower and trading around $65.80 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.567%.

U.S. economic data due for release Wednesday is light and includes the weekly MBA mortgage applications survey and the weekly DOE liquid energy stocks report. 

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 $1,911.00 and then at $1,925.00. First support is seen at the overnight low of $1,897.60 and then at $1,885.00.

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 the overnight high of $28.34 and then $28.50. Next support is seen at $28.00 and then at Tuesday’s low of $27.545. 
Posted by :

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com