(Kitco News) – Gold and silver prices are a bit higher in early U.S. trading Thursday. Bulls are working to put an end to the present downside price corrections in the two precious metals. June gold was last up $3.80 at $2,342.20. May silver was last up $0.124 at $27.47.
The U.S. data point of the day is the advance estimate for first-quarter GDP, including its inflation indexes. First-quarter GDP is seen coming in at up 2.4%, year-on-year, versus a 3.4% rise in the fourth quarter of last year. The report’s inflation indexes are expected to come in at up 2.0%, or just slightly below that level, year-on-year.
Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed to toward solidly lower openings when the New York day session begins. Risk aversion in the marketplace has receded the past couple weeks, allowing traders and investors to focus more on normal supply and demand, and economic fundamentals.
In overnight news, mining giant BHP offered to buy rival Anglo American for almost $39 billion. It’s a “potential megadeal that could reshape the global mining industry,” said DowJones Newswires.
The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are near steady and trading around $82.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is fetching 4.64%.
Other U.S. economic data due for release Thursday includes the weekly jobless claims report, advance economic indicators, pending home sales and the Kansas City Fed manufacturing survey.
Technically, the gold futures bulls have the firm overall near-term technical advantage. However, a nine-week-old uptrend on the daily bar chart has stalled out. 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 $2,350.00 and then at $2,370.00. First support is seen at the overnight low of $2,316.40 and then at this week’s low of $2,304.60. Wyckoff’s Market Rating: 7.0.
The silver bulls have the firm overall near-term technical advantage. However, a nine-week-old uptrend on the daily bar chart has stalled out. Silver bulls’ next upside price objective is closing May futures prices above solid technical resistance at this week’s high of $28.795. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at $27.65 and then at $28.00. Next support is seen at this the overnight low of $27.00 and then at week’s low of $26.715. Wyckoff’s Market Rating: 7.0.
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