Gold, silver see solid gains as USDX slumps

(Kitco News) - Gold and silver prices are posting good gains in midday U.S. trading Thursday. The precious metals are boosted by a sharply lower U.S. dollar index and a slight decline in U.S. Treasury yields on this day. A wobbly U.S. stock market is also working in favor of the metals market bulls. June gold futures were last up $25.40 at $1,841.30. July Comex silver futures were last up $0.321 at $21.86 an ounce.

U.S. stock indexes have seen strong selling pressure recently and are near 12-month lows amid heightened worries about corporate earnings after Wal Mart and Target posted dismal results this week. Both companies cited inflation as the main culprit for their dour earnings numbers. An economic recession in the U.S. is now on the minds of traders and investors who were already saddled with other concerns, including the Russia-Ukraine war and Covid cases causing major cities in China to be on lockdown, which is disrupting global trade. Those concerns are also prompting some safe-haven demand for gold and silver.

The key outside markets today see Nymex crude oil futures prices firmer and trading around $110.00 a barrel. Meantime, the U.S. dollar index is sharply lower and hit a two-week low. The yield on the 10-year U.S. Treasury note is fetching 2.837%.

Technically, June gold futures see a nine-week-old price downtrend still 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 the May low of $1,785.00. First resistance is seen at today's high of $1,848.20 and then at $1,875.00. First support is seen at $1,825.00 and then at today's low of $1,808.40. Wyckoff's Market Rating: 3.5

July silver futures prices scored a bullish "outside day" up on the daily bar chart today. A 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 May low of $20.42. First resistance is seen at $22.25 and then at $22.50. Next support is seen at today's low of $21.25 and then at $21.00. Wyckoff's Market Rating: 2.5.

July N.Y. copper closed up 1,045 points at 428.30 cents today. Prices closed near the session high today. The copper bears still have the firm overall near-term technical advantage. A price downtrend is still in place on the daily bar chart. However, more gains in the near term would negate the downtrend. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 445.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the May low of 403.70 cents. First resistance is seen at 430.00 cents and then at 435.00 cents. First support is seen at 420.00 cents and then at this week's low of 413.15 cents. Wyckoff's Market Rating: 2.5.

By Jim Wyckoff

For Kitco News

 jwyckoff@kitco.com

www.kitco.com