(Kitco News) - Gold futures are moderately lower in midday U.S. trading Thursday, on a corrective pullback and normal profit taking in a still-strong price uptrend. A firmer U.S. dollar index is also a negative for the precious metals on this day. June gold futures were last down $6.40 an ounce at $1,733.80. May Comex silver prices were last up $0.065 at $15.57 an ounce.
Gold futures dropped to session lows around midday when reports surfaced that there were significant glitches in getting the U.S. Treasury stimulus checks mailed out to American taxpayers. That also dropped the U.S. stock market into negative territory but rallied the U.S. dollar index.
The key U.S. data point of the week was Thursday’s weekly jobless claims report, which came in at up 5.25 million--just above the expected 5 million in new claims in the latest week. The Covid-19 pandemic that has mostly shuttered the U.S. economy has seen over 20 million American workers lose their jobs up to this point. Just recently, U.S. economic data covering the past few weeks is showing just how much damage has been inflicted on U.S. businesses. U.S. retail sales in March were down over 8 percent, it was reported Wednesday.
Amid the Covid-19-induced gloom that is pervasive worldwide, there are some positives this week. There are early signs the U.S. and Europe have seen the curve flatten on the rate of new infections. U.S. government and health officials are saying hospitals are keeping up with the influx of coronavirus patients. However, reports say Chinese consumers coming out of the coronavirus lockdown that lasted several weeks are not in a spending mood. This contradicts notions that once the lockdowns are lifted, holed-up North American consumers will coming out swinging regarding spending at retail outlets.
The other important outside markets today see crude oil prices modestly down and trading around $19.65 a barrel after hitting an 18.5-year low on Wednesday. The 10-year U.S. Treasury note yield is trading around 0.64% today, down from recent higher levels. The falling U.S. Treasury yields are a worrisome sign of the major headwinds that have and will likely continue to buffet the U.S. economy in the coming months.
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, June gold futures today scored a bearish “outside day” down on the daily bar chart. Some more normal seeing profit taking and a downside correction were featured. The bulls still have the solid overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,800.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,700.00. First resistance is seen at $17.50 and then at today’s high of $1,768.00. First support is seen at this week’s low of $1,724.20 and then at $1,707.80. 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 a four-week-old uptrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.50. First resistance is seen at $16.00 and then at this week’s high of $16.30. Next support is seen at this week’s low of $15.385 and then at $15.25. Wyckoff's Market Rating: 6.5.
May N.Y. copper closed down 25 points at 229.35 cents today. Prices closed nearer the session low today on a corrective pullback from recent good gains. The copper bulls have the slight overall near-term technical advantage. A price uptrend is in place on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 250.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 220.00 cents. First resistance is seen at this week’s high of 235.25 cents and then at 238.00 cents. First support is seen at this week’s low of 226.35 cents and then at 225.00 cents. Wyckoff's Market Rating: 5.5.
