Gold price hits 3-mo. high as equities, cryptos wobble

By Jim Wyckoff - Kitco News

Gold and silver prices are higher in early morning U.S. trading Monday, with gold notching a three-month high. The precious metals gains to start the trading week comes as global stock markets are stumbling a bit and as the cryptocurrency markets are taking a bigger hit. Bullish technical charts for gold and silver have the metals bulls confident at present. June gold futures were last up $11.60 at $1,849.60 and July Comex silver was last up $0.35 at $27.71 an ounce.

Reports overnight said money flows are moving back into the SPDR Gold Trust exchange-traded fund—possibly due in part to the cryptocurrencies become more wobbly recently.

Global stock markets were mostly weaker overnight. U.S. stock indexes are pointed toward modestly lower openings when the New York day session begins. The discussion in the marketplace continues to be on whether inflationary pressures will grow to levels that create economic distress down the road. The line coming from the Federal Reserve at present is that rising inflation is only a "transitory" matter. However, other economists and market analysts say inflation cannot help but become problematic in the coming months and point to strong evidence in place already, including generally rising raw commodity prices.

In overnight news, China reported more generally strong economic data Monday, as industrial output in April was up 9.8%, year-on-year, while retail sales were up 17.7% in the period. The retail sales figure was less than forecast. These numbers coming out of the world's second-largest economy certainly land in the higher-inflation camp.

The key outside markets today see the U.S. dollar index steady-weak. Meantime, Nymex crude oil prices are lower and trading around $65.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.625%.

U.S. economic data due for release Monday includes the Empire State manufacturing survey, the NAHB housing market index, and Treasury international capital data.

Technically, June gold futures bulls have the firm overall near-term technical advantage amid a seven-week-old price uptrend in place on the daily bar chart.

Bulls' next upside price objective is to produce a close above solid resistance at $1,881.00.

Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00.

First resistance is seen at the overnight high of $1,855.80 and then at $1,858.90. First support is seen at the overnight low of $1,841.10 and then at $1,830.00. Wyckoff's Market Rating: 6.5

The silver bulls have the overall near-term technical advantage amid a seven-week-old price uptrend in place on the daily bar chart.

Silver bulls' next upside price objective is closing July futures prices above solid technical resistance at $29.00 an ounce.

The next downside price objective for the bears is closing prices below solid support at $26.00.

First resistance is seen at the overnight high of $27.895 and then at the May high of $28.005. Next support is seen at the overnight low of $27.44 and then at $27.00. Wyckoff's Market Rating: 6.5.

The original article was written by Jim Wyckoff and published on Kitco News