(Kitco News) - Gold prices are trading modestly up in midday U.S. trading Wednesday. Overnight and early trading saw a normal corrective price pullback in an uptrend after gold hit a 7.5-year high of $1,742.60 on Tuesday, basis June Comex futures. Bulls saw the pullback as a buying opportunity as the charts are fully bullish for gold. June gold futures were last up $2.50 an ounce at $1,686.10. May Comex silver prices were last down $0.225 at $15.255 an ounce.
Global stock markets were mixed to weaker in overnight trading. U.S. stock indexes are solidly higher at midday. This week, as global stock markets have rebounded, it’s becoming more apparent to more than a few veteran traders/analysts that many markets are close to, or already have, factored into their prices the general economic impact of the coronavirus pandemic. Of course, nobody ever knows for sure on calling market bottoms or tops, or knowing the ultimate economic impact of major shock events. Still, there are emerging technical signals in several major markets that do suggest they have put in near-term bottoms, if not major bottoms. The U.S. stock indexes are in this category.
At mid-week on this holiday-shortened week (Markets are closed for Good Friday.) traders and investors are still seeing the Covid-19’s destructive human toll. The U.S. saw 50% more citizens die from the coronavirus Tuesday than any other day. However, the U.S. and Europe are hoping the models suggesting the next week will be the worst, regarding new virus infections, are correct, and that the curve will have then peaked for them. New York Governor Cuomo said at midday New Yorkers are “flattening the curve” of the virus infections—and that’s positive news.
In overnight news, European stocks were pressured by a survey that suggested Germany’s gross domestic product would decline by nearly 10% in the second quarter.
The important outside markets today see Nymex crude oil prices higher and trading around $24.25 a barrel. There are reports Russia and Saudi Arabia are close to a deal to cut their crude oil production levels. OPEC officials will meet via a conference call on Thursday to discuss production cuts. An agreement is not a certainty and now the amount of production cuts is in question. The U.S. dollar index is modestly higher. The 10-year U.S. Treasury note yield is trading around 0.72% Wednesday.
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, June gold futures bulls have the solid overall near-term technical advantage. More upside is likely in the near term. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at today’s high of $1,742.60. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,625.00. First resistance is seen at $1,700.00 and then at the March high of $1,707.80. First support is seen at today’s low of $1,670.70 and then at $1,650.00. Wyckoff's Market Rating: 8.0
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
May silver futures bulls have the overall near-term technical advantage. Prices are in an uptrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $16.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.00. First resistance is seen at $15.50 and then at this week’s high of $15.93. Next support is seen at $15.00 and then at $14.75. Wyckoff's Market Rating: 6.0.
May N.Y. copper closed down 135 points at 225.85 cents today. Prices closed nearer the session low today. The copper bulls and bears are on a level overall near-term technical playing field. A price downtrend has been negated on the daily chart and now an uptrend is beginning. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 240.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 215.00 cents. First resistance is seen at today’s high of 228.75 cents and then at this week’s high of 231.75 cents. First support is seen at 221.85 and then at this week’s low of 218.20 cents. Wyckoff's Market Rating: 5.0.
