Gold and silver prices are holding decent gains in early U.S. trading Thursday, due in part to the solid rebound in the crude oil market following the early-week collapse in oil prices. Crude oil is arguably the leader of the raw commodity sector that includes the metals, and when oil’s price is in a free fall, the rest of the sector feels the downside pressure, too. Safe-haven demand for gold and silver remains a feature amid a very sick global economy. June gold futures were last up $8.10 an ounce at $1,746.20. May Comex silver prices were last up $0.235 at $15.565 an ounce.
The just-released weekly jobless claims report showed a rise of 4.4 million, which was in line with market expectations. Gold prices did back down a bit right around the time of the release of the data.
Global stock markets were narrowly mixed in overnight trading. U.S. stock indexes are pointed toward near steady openings when the New York day session begins. The stock markets are working to recover from early-week pressure tied to the historic collapse in crude oil prices. Oil prices are solidly higher again today, with Nymex West Texas Intermediate (WTI) June futures trading up around $2.00 at $15.50. U.S.-Iran tensions up-ticked Wednesday when President Trump tweeted that he has instructed the U.S. navy to “destroy” any Iranian vessels that harass U.S. ships.
North American and European citizens are still mostly locked down as the debate intensifies on the question of when to reopen local, regional and national economies. Opinions on the matter very widely, with there being no absolutely correct answer.
In more signs the Covid-19 pandemic is wreaking severe pain on the global economy, the Euro zone April composite purchasing managers index (PMI) came in at 13.5 versus 29.7 in March. The April reading was well below market expectations. A reading below 50.0 suggests contraction.
The other important outside markets today see the U.S. dollar index firmer. Greenback bulls remains strong. The 10-year U.S. Treasury note yield is trading around 0.625% this morning—up from levels seen earlier this week and a sign of a bit less anxiety in the marketplace.
Other U.S. economic reports due for release Thursday include the U.S. flash services PMI and flash manufacturing PMI, new residential sales and the Kansas City Federal Reserve manufacturing survey.
Technically, the gold bulls have the solid overall near-term technical advantage and have gained more power late this week. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at $1,800.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at this week’s low of $1,666.20. First resistance is seen at $1,768.00 and then at the April high of $1,788.80. First support is seen at the overnight low of $1,730.60 and then at $1,700.00. Wyckoff’s Market Rating: 8.0
May silver futures bulls and bears are on a level overall near-term technical playing field as a price uptrend on the daily bar chart has been negated. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the April high of $16.30 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.00. First resistance is seen at the overnight high of $15.72 and then at $16.00. Next support is seen at today’s low of $15.205 and then at $15.00.