(Kitco News) – Gold prices are just a bit weaker in early U.S. trading after hitting another record high overnight at $2,300.00 basis spot, and at $2,324.80 basis June Comex futures. Silver prices are slightly up and hit a two-year high overnight, at $27.455 basis May Comex futures. Safe-haven demand remains the feature as geopolitical tensions in the Middle East have ratcheted up. Firmly bullish charts for both metals are driving speculators to the long sides. June gold was last down $2.90 at $2,312.20. May silver was last up $0.065 at $27.125.
The Associated Press reported that the U.S. military is expecting some form of retaliation from Iran after Israel earlier this week killed some top-brass Iranian military officials in an air strike. Iran has said in the past it holds the U.S. responsible for any Israeli attack on Iran, given the very close ties between the U.S. and Israel and much of Israel’s military weapons coming from the U.S.
The stock and bond markets, as was as the precious metals, were somewhat assuaged by Fed Chairman Jerome Powell’s comments on the U.S. economy in a speech at Stanford University Wednesday afternoon. Powell said U.S. interest rate cuts are still likely this year. The marketplace at present has priced in two interest rate cuts this year.
Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins.
In overnight news, the Eurozone February producer price index was reported down 8.3%, year-on-year. The decline was mostly due to a drop in energy prices.
The marketplace is awaiting the U.S. data point of the week, if not the month, on Friday morning. The March employment situation report from the Labor Department is due out. The key non-farm payrolls number is seen coming in at up 200,000, which compares to a rise of 275,000 in the February report.
The key outside markets today see the U.S. dollar index a bit weaker. Nymex crude oil prices are near steady after hitting a five-month high Wednesday and are trading around $85.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 4.36%.
U.S. economic data due for release Thursday includes the Challenger job-cuts report, the international trade report, the weekly jobless claims report, the global services PMI. A few Federal Reserve officials are also scheduled to speak today.
Technically, the gold futures bulls have the strong overall near-term technical advantage. A six-week-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at $2,400.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,250.00. First resistance is seen at the overnight contract high of $2,324.80 and then at $2,335.00. First support is seen at $2,300.00 and then at Wednesday’s low of $2,285.70. Wyckoff’s Market Rating: 9.0.
The silver bulls have the solid overall near-term technical advantage. Prices are in an accelerating six-week-old uptrend on the daily bar chart. Silver bulls’ next upside price objective is closing May futures prices above solid technical resistance at $28.00. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at the overnight high of $27.455 and then at $28.00. Next support is seen at $27.00 and then at $26.50. Wyckoff’s Market Rating: 8.0.
(Hey! My “Markets Front Burner” weekly email report is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. Plus, I’ll throw in an educational feature to move you up the ladder of trading/investing success. And it’s free! Email me at jim@jimwyckoff.com and I’ll add your email address to my Front Burner list.)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.