Mild price gains for gold, silver as volatility wanes
Gold and silver prices are posting modest gains in early U.S. trading Friday. Recent price action in gold and silver has seen daily volatility die down as traders and investors are now pricing in the Middle East war winding down. Mild technically related buying from the shorter-term futures traders is featured again today. June gold was last up $5.90 at $4,814.40. May silver prices were up $0.635 at $79.38.
Latest on the war in the Middle East…
--Trump says Iran deal getting closer as Lebanon-Israel truce starts
-- Asia relying on U.S. crude to replace Middle East supply
--Oil, gas recovery may take two years after war, IEA says
--Trump admin. officials urge oil industry to boost output amid war
President Trump on Thursday struck an optimistic tone for prospects that the U.S. and Iran could clinch a permanent ceasefire as the two sides discuss an extended truce ahead of its expiration next week. “It’s looking very good that we’re going to make a deal with Iran, and it’s going to be a good deal,” Trump told reporters at the White House Thursday and as reported by Bloomberg. Talks between Washington and Tehran could resume this weekend, he said. Trump said that Iran had agreed to terms it has long resisted, including giving up ambitions for a nuclear weapon and turning over nuclear material. The deal would also include “free oil” and an opening of the Strait of Hormuz, Trump added. Tehran has not publicly confirmed it’s made those concessions. The President said he didn’t expect he would have to extend the two-week ceasefire in order to reach a deal, predicting a resolution would be made “fairly soon,” but that if he needed to, he would.
Canada says its ready for comprehensive U.S. trade agreement… Canada-U.S. Trade Minister Dominic LeBlanc said Thursday his government wants to resolve trade frictions with the Trump administration as part of a comprehensive agreement. LeBlanc said Canada is ready and willing to resolve issues raised by U.S. Trade Representative Jamieson Greer, including Canada's supply-managed dairy system and regulations affecting major U.S. technology firms, Bloomberg reported. LeBlanc emphasized that any progress must come as part of a "larger agreement" that would ease pressure on tariff-affected sectors of Canada's economy and provide greater certainty around the U.S.-Mexico-Canada Agreement review process.
The key outside markets see Nymex WTI crude oil prices lower and trading around $91.50 a barrel. The U.S. dollar index is weaker. The yield on the benchmark 10-year U.S. Treasury note is presently 4.3 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 this week’s high of $4,895.40 and then at $4,950.00. First support is seen at $4,750.00 and then at $4,700.00. Wyckoff's Market Rating: 6.5.
May silver futures bulls see their 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 $81.155 and then at $82.50. Next support is seen at $77.00 and then at $75.00. Wyckoff's Market Rating: 6.5.
