Precious Metals Pause After Rally Gold Dips and Silver Edges Higher. Gold and silver prices are taking a breather on Thursday after hitting multi-week highs in the previous session. The precious metals are consolidating their recent gains, with gold prices retreating and silver modestly up near midday.
Gold Hit Four-Week High Overnight, Silver Touched Five-Week Peak
The June gold futures contract was last down $12.70 at $2,382.20 on the Comex division of the New York Mercantile Exchange. Overnight, gold prices climbed to a four-week high before paring gains. The July silver futures contract was last up $0.051 at $29.78, after hitting a five-week high earlier in the session.
Mixed U.S. Economic Data, Record Stock Highs Weigh on Gold
Thursday brought a flurry of U.S. economic reports, with the data proving to be a mixed bag containing no significant surprises to significantly move the markets. U.S. stock indexes are firmer near midday and hit new record highs after Wednesday’s slightly cooler-than-expected U.S. CPI report. The rally in the stock market, a competing asset class with the safe-haven metals, is a bearish daily element for gold and silver.
U.S. Dollar Index Firmer, Crude Oil Prices Up, Treasury Yields Steady
The key outside markets today see the U.S. dollar index firmer, potentially weighing on dollar-denominated commodities like gold and silver. Nymex crude oil prices are up and trading around $79.25 a barrel, while the yield on the benchmark 10-year U.S. Treasury note is fetching around 4.4%.
Gold Technical Analysis: Bulls Hold Solid Near-Term Advantage
Technically, June gold futures prices hit a four-week high early on today. The bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the record high of $2,448.80. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,300.00. Wyckoff’s Market Rating for gold stands at 7.5.
Silver Technical Analysis: Solid Bullish Near-Term Technicals
July silver futures prices hit a five-week high early on today. The silver bulls have the solid overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the contract high of $30.19. The next downside price objective for the bears is closing prices below solid support at this week’s low of $28.185. Wyckoff’s Market Rating for silver is 8.0.
Copper Bulls Maintain Edge After Profit-Taking From Record High
July N.Y. copper closed down 590 points at 486.55 cents today, with profit-taking kicking in after prices hit a record high of 512.80 cents on Wednesday. The copper bulls have the solid overall near-term technical advantage, and prices are in a three-month-old uptrend on the daily bar chart. Wyckoff’s Market Rating for copper stands at 8.0.
