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(Kitco News) – Gold and silver prices trade strongly at midday Monday in the United States, as the global market has seen a strong upturn in sentiment to start trading week, reports say that the coronavirus epidemic could be defused. This somewhat encouraging news seems to be a gold caps scenario for gold and, to a lesser extent, for silver, as buyers are more confident to intervene and buy the safe metals, knowing that there are still very difficult times ahead, including the spectrum of problems. inflation further down the road. Gold futures for June were up $ 46.10 an ounce to $ 1,692.20. May Comex silver prices were up $ 0.561 to $ 15.045 an ounce.
Global stock markets were mostly higher in the night trade. American stock indexes are significantly higher at noon. The coronavirus epidemic that has paralyzed the global economy seems to be easing somewhat, according to some models that predict the maximum number of cases and deaths. However, the week ahead is going to be “our time in Pearl Harbor, our time in September 11,” said American surgeon general Jerome Adams, regarding an expected wave of deaths from coronavirus in the United States in New York, the epicenter American Covid-19, New Orleans and Detroit are facing particularly difficult days.
The debate in the coming days, especially if the Covid-19 surge begins to subside, will be when to restart the global economies. Traders and investors are also handicapped, so global economies will resume full speed when they seriously restart. There are complex supply chains that have been severely disrupted in recent weeks.
Reports indicate that the US Treasury market and the short-term securities market are performing better than a few weeks ago, following the massive injection of liquidity by the Federal Reserve into these markets.
Large foreign markets are now seeing Nymex crude oil prices drop and trade around $ 26.60 a barrel. There are reports that Russia and Saudi Arabia are close to an agreement to cut their crude oil production levels following pressure from President Trump to do so. OPEC officials were scheduled to meet today via conference call to discuss production cuts, but the meeting was postponed until Thursday. The US dollar index is slightly higher this morning, as the bulls have regained power. The yield on 10-year US Treasuries is trading around 0.65% Monday morning, up from Friday’s levels.
Technically, the June gold bulls have the solid short-term overall technical advantage and have gained more power today. The next bullish target for short-term gold bull prices is to produce near-solid technical resistance at the high of $ 1,707.80. Bears’ next short-term price cut target pushes prices under solid technical support to $ 1,625.00. The first resistance is observed at the high of $ 1,696.00 then at $ 1,700.00. The first support is seen at $ 1,675.00 then at $ 1,650.00. Wyckoff Market Rating: 8.0
The May silver futures contract peaked three weeks ago today. The silver bulls regained the overall technical advantage in the short term. Silver Bulls’ next bullish price target is to close prices above solid technical resistance at $ 16.00 an ounce. The next breakout price target for the bears is to close prices under solid support at $ 13.50. The first resistance is observed at $ 15.20 then at $ 15.50. The next support is seen at the low of $ 14,355 then at $ 14.00. Wyckoff Market Assessment: 6.0.
May New York copper has closed up 215 points to 221.40 cents today. Prices closed near the high session today on short cover. Copper bears still have the overall short-term technical advantage. A bearish flag pattern has formed on the daily bar chart. The next target for higher copper bullish prices is to push and close prices above solid technical resistance at 230.00 cents. The next target for lower bear prices is to close prices under strong technical support at the March low of 197.25 cents. The first resistance is observed at last week’s high at 224.80 cents then at 228.00 cents. The first support is seen at today’s low of 218.20 cents then last week’s low of 213.55 cents. Wyckoff Market Assessment: 3.0.
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