Gold, Silver Stabilize Following This Week's Pressure

(Kitco News) - Gold and silver prices areslightly higher in early U.S. trading Thursday, as the precious metals aretrying to stabilize after selling off most of this week. Gold prices hit afour-week low on Wednesday. June Comex gold futures were last up $1.60 an ounceat $1,324.40. May Comex silver was last up $0.008 at $16.51 an ounce.

Worldstock markets were mostly firmer overnight. U.S. stock indexes are also pointedtoward modestly higher openings when the New York day session begins. Upbeatcorporate earnings reports recently are working in favor of the stock marketbulls today. However, worries about rising inflation are limiting the upside inworld stock markets. The marketplace has viewed with trepidation this week themove above 3.0% in U.S. 10-year Treasury note yields.

TheEuropean central bank held its regular monetary policy meeting Thursday. Nochange in policy occurred and none was expected.

Thekey “outside markets” on Thursday morning see the U.S. dollar index tradingslightly up and hitting another 3.5-month high overnight. Meantime, Nymex crude oil prices are firmer and trading just below $69.00 a barrel. Oil bulls havethe solid near-term technical advantage, which is a bullish underlying elementfor the metals markets, as well as other raw commodities.

U.S.economic data due for release Thursday includes the weekly jobless claimsreport, the advance economic indicators report, the Kansas City Fedmanufacturing survey, and durable goods orders.

Technically,Junegold bulls still have the overall near-term technical advantage, but havefaded and need to show fresh power soon to avoid serious chart damage. Goldbulls' next upside near-term price breakout objective is to produce a closeabove solid technical resistance at $1,350.00. Bears' next near-term downsideprice breakout objective is pushing prices below solid technical support at theMarch low of $1,309.30. First resistance is seen at today’s high of $1,328.00and then at this week’s high of $1,337.60. First support is seen at this week’slow of $1,320.20 and then at $1,312.40. Wyckoff's Market Rating: 6.0

Maysilver futures bulls and bears are on a level overall near-term technicalplaying field. Silver bulls' next upside price breakout objective is closingprices above solid technical resistance at the April high of $17.36 an ounce.The next downside price breakout objective for the bears is closing pricesbelow solid support at the March low of $16.10. First resistance is seen at $16.75and then at $16.89. Next support is seen at $16.40 and then at $16.25.Wyckoff's Market Rating: 5.0.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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