Gold, silver gain on perceived bargain buying
Gold and silver prices are higher near midday Wednesday but off their daily highs. Buying interest in the precious metals is supported by firmer crude oil prices. U.S. Treasury yields have also down-ticked a bit at mid-week. Perceived bargain hunting after Tuesday’s losses is also featured in both precious metals markets. June gold was last up $35.10 at $4,753.30. May silver prices were up $1.507 at $77.97.
The key outside markets see Nymex WTI crude oil prices firmer and trading around $92.50 a barrel. The U.S. dollar index is a bit firmer. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.28 percent.
Note: The gold market operates through two primary pricing mechanisms. The first is the spot market, which quotes prices for on-the-spot purchase and immediate delivery. The second is the futures market, which sets prices for delivery at a future date. Due to year-end positioning market liquidity, the December gold futures contract is currently the most actively traded on the CME.
Technically, June gold futures bulls’ next upside price objective is to produce a close above solid resistance at $5,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $4,500.00. First resistance is seen at $4,800.00 and then at this week’s high of $4,854.80. First support is seen at today’s low of $4,733.10 and then at $4,700.00. Wyckoff's Market Rating: 6.0.
May silver futures bull’s next upside price objective is closing prices above solid technical resistance at $85.00. The next downside price objective for the bears is closing prices below solid support at $70.00. First resistance is seen at this week’s high of $80.755 and then at last week’s high of $83.245. Next support is seen at this week’s low of $75.38 and then at $75.00. Wyckoff's Market Rating: 6.0.
