(Kitco News) – Gold prices are higher and hit another record high overnight, with June Comex gold reaching $2,372.50. Silver prices hit a two-year high overnight, with May Comex futures hitting $28.195. Save-haven demand remains a feature in the two precious metals. Fully bullish technical are also fueling speculative buying interest in gold and silver. June gold was last up $13.00 at $2,358.40. May silver was last up $0.382 at $27.885.
Broker SP Angel today in an email dispatch said the gold market rally has “dumfounded” most analysts, given the break from its correlation with U.S. Treasuries, which have sold off over the past month. Also, the U.S. dollar has been stronger and that’s usually bearish for gold and silver. “Central bank buying has been a sustained source of support for gold, with Bloomberg reporting China’s PBOC has added gold for the 17th month in a row,” said the broker, adding this has fueled speculation over a potential devaluation of the Chinese yuan, as well as geopolitical concerns over heightened aggression against Taiwan.
Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins. Last Friday’s strong U.S. jobs report has the marketplace now reckoning the Federal Reserve will raise U.S. interest rates only twice this year. Reads a Wall Street Journal headline today: “Economic data stir doubts about Fed rate cuts.”
The economic highlights this week will be Wednesday, with the releases of the March consumer price index and the minutes of the last FOMC meeting. Thursday comes the U.S. March producer price index and the European Central Bank monetary policy meeting.
In weekend/overnight news, Israel said it is withdrawing some of its troops from Gaza but said the ground offensive will continue. Ceasefire talks are said to be ongoing.
The key outside markets today see the U.S. dollar index slightly higher. Nymex crude oil prices are weaker and trading around $86.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 4.45%.
U.S. economic data due for release Monday is light and includes the employment trends index.
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 contract high of $2,324.80 and then at $2,335.00. First support is seen at the overnight low of $2,286.20 and then at $2,267.10. Wyckoff’s Market Rating: 8.5.
The silver bulls have the strong overall near-term technical advantage. Prices are in an accelerating seven-week-old uptrend on the daily bar chart. Silver bulls’ next upside price objective is closing May futures prices above solid technical resistance at $30.00. The next downside price objective for the bears is closing prices below solid support at $26.235. First resistance is seen at the overnight high of $28.195 and then at $28.50. Next support is seen at $27.00 and then at $26.40. Wyckoff’s Market Rating: 8.5.
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