Routine price corrections for gold, silver after recent gains

By Jim Wyckoff - Kitco News

Gold and silver prices are moderately down in early U.S. trading Thursday, on a normal corrective pullback and some chart consolidation after recent gains that saw both metals hit multi-week highs this week. Bulls are still enjoying near-term price uptrends in place on the daily bar charts. June gold futures were last down $9.70 at $1,783.80 and May Comex silver was last down $0.17 at $26.40 an ounce.

Global stock markets were mixed to mostly firmer overnight. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins. The U.S. indexes are seeing a routine pause and some chart consolidation much of this week after last week hitting record highs.

The European Central Bank announces its latest policy decision this morning, with analysts expecting no policy changes. ECB President Christine Lagarde will likely be questioned on how long the ECB plans to keep buying bonds.

The key outside markets today see the U.S. dollar index weaker and continuing in a near-term downtrend. Nymex crude oil prices are modestly lower and trading around $61.00 a barrel. Meantime, the yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.561%.

It’s a busy day for U.S. economic data Thursday, including the weekly jobless claims report, the Chicago Fed national activity index, existing home sales, leading economic indicators, and the Kansas City Fed manufacturing survey.

Technically, June gold futures bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at last week’s low of $1,723.20.

First resistance is seen at this week’s high of $1,798.40 and then at $1,800.00. First support is seen at $1,775.00 and then at this week’s low of $1,763.50. Wyckoff's Market Rating: 6.0

The silver bulls have the overall near-term technical advantage. A three-week-old price uptrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $27.00 an ounce. The next downside price objective for the bears is closing prices below solid support at last week’s low of $24.68.

First resistance is seen at this week’s high of $26.73 and then at $27.00. Next support is seen at $26.00 and then at this week’s low of $25.67. Wyckoff's Market Rating: 6.0.

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