Gold and silver rise as stock markets and bond yields fall

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(Kitco News) – Gold and silver prices rose strongly in midday US trading on Tuesday, buoyed by further selling in US stock indices, falling US Treasury yields, and recent sharp losses in the US dollar index that hit another four-week low today. Risk aversion is much more cautious in the general market early this week, and this calls for a safe haven demand for precious metals. June gold futures rose $19.10 at $1,866.90 last time. Comex silver futures for July were up $0.392 at $22.12 an ounce.

Most global stock markets fell overnight. US stock indices are lower at midday and are in or near bear market territory, which is defined as 20% or more below their recent highs. Geopolitical and inflation concerns are keeping stock market bulls on edge. Fears of a US economic recession are growing after the release of some pessimistic US economic data today.



Later today, Federal Reserve Chairman Jerome Powell will deliver remarks at the Economic Summit in Las Vegas.

The other major offshore market today is seeing NYMEX crude oil futures prices weaken and are trading around $109.50 a barrel. Meanwhile, the yield on the 10-year US Treasury is 2.749%.

Technically speaking, gold futures prices for June hit a two-week high again today. There is still a downtrend for the price from 2.5 months ago on the daily bar chart. With that said, more price gains this week may invalidate the downtrend. Bears have the overall technical advantage in the near term. However, the bulls have momentum on their side. The next bullish price target for the bulls is to produce a close above the solid resistance at $1,900.00. The bears’ next bearish price target in the near term is pushing futures prices below the strong technical support at the May low of $1,785.00. We see the first resistance at $1,875.00 and then at $1,883.00. The first support is seen at $1,850.00 and then this week’s low at $1,843.30. Wyckoff Market Rating: 4.0.

24 hour silver chart [ Kitco Inc. ]

Silver futures for July are seeing a downtrend in price that is still valid on the daily bar chart. With that said, more price gains this week may invalidate the downtrend. Silver bears have the overall technical advantage in the near term. The next bullish price target for the silver bulls is to close prices above the strong technical resistance at $23.00 an ounce. The bears’ downtrend price next target is a price close below the strong support level of the May low at $20.42. We notice the first resistance at the day’s high at $22.215, then $22.50. Next support is seen at the day’s low at $21.645, then $21.50. Wyckoff Market Rating: 3.0.

Copper in New York closed in July, down 345 points at 431.05 cents today. Prices closed near the session high today. The copper bears have the overall technical advantage in the near term. With that said, more gains this week may invalidate the downtrend of the price on the daily bar chart. The next bullish price target for the copper bulls is to push and close prices above the solid technical resistance at 450.00 cents. The bears’ downtrend price next target is prices to close below strong technical support at the May low of 403.70 cents. We notice first resistance at this week’s high at 435.50 cents, then at 440.00 cents. First support is seen at the day’s low at 425.65 cents, then at 422.50 cents. Wyckoff Market Rating: 3.0.

Not giving an opinion: The opinions expressed in this article are those of the author and may not reflect the views of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; However, Kitco Metals Inc. cannot. Nor does the author guarantee this accuracy. This article is for informational purposes only. It is not a solicitation to conduct any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. does not accept The author of this article will be liable for losses and/or damages arising from the use of this publication.

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