Gold up as crude oil rebounds, inflation worries linger

Gold prices are higher in midday U.S. trading Monday, supporting by continued worries about problematic price inflation which will likely get worse before it gets better. A rebound in crude oil prices today also supports the metals markets. June gold futures were last up $13.10 at $1,936.60 and May Comex silver was last down $0.029 at $24.625 an ounce.

Global stocks markets were mixed but mostly firmer overnight. The U.S. stock indexes are higher at midday. The U.S. stock indexes are in near-term price uptrends. Markets in mainland China were closed for a holiday Monday.

The Russia-Ukraine war drags on, with the atrocities inflicted by Russian dictator Putin’s aggression becoming more apparent to the world. Such may prompt the U.S. and European Union to implement even more sanctions on Russia, including on its oil and natural gas exports. Still, from a markets perspective, not much has changed in the war the past couple weeks. That has allowed many markets to stabilize and become less volatile. It has also allowed the metals markets to focus more on rising inflation and its implications on markets and world economies. History shows that problematic price inflation has been bullish for metals market prices.

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Nymex crude oil prices are solidly up and trading around $101.50 a barrel. Meantime, the U.S. dollar index is higher today. The benchmark U.S. 10-year Treasury note is presently yielding 2.4%.

Technically, April gold futures bulls have the overall near-term technical advantage amid recent sideways and choppy trading. Bulls' next upside price objective is to produce a close above solid resistance at $1,967.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the March low of $1,888.30. First resistance is seen at $1,950.00 and then at $1,955.00. First support is seen at today’s low of $1,918.20 and then at $1,900.00. Wyckoff's Market Rating: 6.0

May silver futures bulls have the slight overall near-term technical advantage. However, prices are in a three-week-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $26.16 an ounce. The next downside price objective for the bears is closing prices below solid support at $23.50. First resistance is seen at $25.00 and then at $25.285. Next support is seen at today’s low of $24.385 and then at the March low of $24.045. Wyckoff's Market Rating: 5.5.

May N.Y. copper closed up 890 points at 477.80 cents today. Prices closed nearer the session high today. The copper bulls have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 500.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the March low of 446.85 cents. First resistance is seen at last week’s high of 482.80 cents and then at 490.00 cents. First support is seen at 470.00 cents and then at last week’s low of 464.20 cents. Wyckoff's Market Rating: 6.5.

By Jim Wyckoff

For Kitco News

Time to buy Gold and Silver on the dips