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(Kitco News) – Gold and silver prices are higher in early US trading on Thursday, fueled by bullish forces outside the market this day including a drop in US Treasury yields and higher crude oil prices. A crypto sell-off later this week is also likely to benefit gold and silver market bulls. june gold futures was the last $13.40 to $1,936.30 and May Comex silver it was last up $0.177 at $24.63 an ounce.
Global stock markets were mixed overnight. US stock indices point to slightly higher openings as the New York daily session begins. A feature in the market late this week is Nymex crude oil futures prices which fell sharply on Wednesday and are currently trading below $100 a barrel. That has put some risk appetite back into a still highly uncertain global market amid the war between Russia and Ukraine. Nymex crude oil prices are higher today and are currently trading around $98.00 per barrel.
The Federal Reserve’s FOMC meeting minutes released Wednesday afternoon had a hawkish tone, but on Tuesday, the typically dovish Fed Governor Lael Brainard got a bit ahead of the FOMC minutes by sounding hawkish. aggressive on US monetary policy and the fight against inflation. US Treasury yields are rising again and hit a three-year high this week. Treasury yields are very likely to continue to rise in the coming weeks, or more. There is an old trading adage that every time a trade seems “obvious”, the trader needs to be more careful. This long-time market watcher believes there is one futures trade today that is an exception to that old maxim: sell futures on US Treasury notes and bonds. US Treasury prices fall as yields increase. The benchmark yield on the 10-year US Treasury note currently stands at 2.585%.
Meanwhile, the US Dollar Index is slightly lower earlier today and hit a nearly two-year high overnight. Dollar bulls remain very strong, technically and fundamentally.
Cryptocurrencies are under pressure at the end of this week, due in part to news that the US Treasury is calling for more oversight regulation of cryptocurrencies.
US economic data to be released on Thursday includes weekly jobless claims report, monthly chain store sales index and consumer credit.
Technically, June gold futures bulls have the overall short-term technical advantage. The Bulls’ next upside price objective is to produce a close in April futures above major resistance at $2,000.00. The bears’ next short-term downside price objective is to push futures prices below solid technical support at $1,850.00. The first resistance is seen at $1,940.00 and then at $1,950.00. First support is seen at the overnight low of $1,923.30 and then this week’s low of $1,916.20. Wyckoff Market Rating: 6.0
May silver futures bulls have a slight overall short-term technical advantage but need to show new power soon to sustain it. The next bullish price objective for the Silver Bulls is to close prices above solid technical resistance at $25.50 an ounce. The next downside price objective for the bears is to close prices below solid support at the March low of $24,045. The first resistance is seen at Wednesday’s high of $24.68 and then at $25.00. Next support is seen at this week’s low of $24.20 and then $24.045. Wyckoff Market Rating: 5.5.
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