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(Kitco News) – Gold and silver prices rallied in early US trading on Monday amid some perceived bargain hunting and bullish external market forces that include a weaker US dollar index and slightly higher crude oil prices … Bulls in gold and silver have regained a slight short-term technical advantage. June gold futures last climbed $ 17.90 to $ 1,785.60, and July Comex silver rose $ 0.652 to $ 26.53 an ounce.
On the eve of the global stock markets, multidirectional dynamics was observed: Asian stocks generally fell, while European stocks were more stable. US stocks point to higher openings when the New York afternoon session begins. American traders and investors are upbeat about the trading week amid recent economic data, which broadly suggests stronger US business activity and a decline in Covid-19 cases, suggesting that the pandemic is finally loosening grip on the world’s largest economy.
On Monday, some upbeat news came out of the eurozone as well. The April Manufacturing Purchasing Managers Index (PMI) for the region stood at 62.9 after a reading of 62.5 in March. A number above 50.0 suggests growth in the sector.
Key foreign markets are expecting a decline in the US dollar index today. Crude oil prices on the NYMEX are up slightly at around $ 64 per barrel. Meanwhile, the yield on 10-year US Treasuries is currently around 1.646%.
Today is a busy Monday for US economic data, including US Manufacturing Purchasing Managers (PMI), ISM Manufacturing Report, Global Manufacturing PMI, Construction Spending and Domestic Auto Sales. Federal Reserve Chairman Jerome Powell is also due to speak this afternoon.
Technically, bulls and bears in June gold futures are in line with general near-term technical conditions amid recent volatile trading. The next target for the bulls is to close above the solid resistance at $ 1,800.00. The next short-term target for the bears is to bring futures prices below solid technical support at $ 1,723.20. The first resistance is seen at last week’s high of $ 1,789.90, followed by $ 1,800.00. First support is seen at an overnight low of $ 1,765.60 followed by last week’s low of $ 1,754.60. Wyckoff Market Rating: 5.0
Silver bulls have little overall short-term technical advantage. The next upside target for silver is to close July futures above solid technical resistance at $ 27.00 an ounce. The next target for the bears is the close below the solid support at $ 25. The first resistance is seen at last week’s high of $ 26.58 and then at the April high of $ 26.765. Next support is seen at $ 26 and then at last week’s low of $ 25,745. Wyckoff Market Rating: 5.5.
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