Gold prices experienced a slight decline while silver saw a modest increase during early U.S. trading on Thursday. Both precious metals are taking a pause ahead of an upcoming day filled with U.S. economic reports. Silver prices reached a five-week peak overnight and are positioned to surpass the April high, potentially reaching levels not seen in over three years. June gold was last observed down by $5.40, settling at $2,389.40, while July silver was up by $0.171, reaching $29.89.
Thursday marks another eventful day for U.S. economic data releases, including the weekly jobless claims report, the Philadelphia Fed business survey, new residential construction figures, import and export price indexes, and industrial production and capacity utilization statistics. Additionally, several Federal Reserve officials are scheduled to deliver speeches throughout the day.
Overnight, Asian and European stock indexes generally trended higher. As the New York day session commences, U.S. stock indexes are expected to open slightly firmer, potentially reaching new record highs. The markets were buoyed by a U.S. Consumer Price Index (CPI) report on Wednesday that revealed slightly lower-than-anticipated inflation, much to the delight of stock and commodity market investors.
In terms of external market indicators, the U.S. dollar index shows a minor uptick. Meanwhile, Nymex crude oil prices experienced weakness, hovering around $78.25 per barrel. The yield on the benchmark 10-year U.S. Treasury note stands at 4.34%.
From a technical standpoint, the bullish momentum remains strong for gold futures in the near term. The next target for the bulls is to achieve a closing price in June futures surpassing the significant resistance level set at the contract high of $2,448.80. Conversely, the bears aim to drive futures prices below the robust technical support level at $2,300.00 in the short term. Initial resistance is identified at the recent overnight peak of $2,402.70, followed by $2,415.00. On the downside, initial support lies at $2,375.00, with further support at Wednesday’s low of $2,357.10. As per Wyckoff’s Market Rating, the current assessment stands at 7.5.
The silver bulls have the solid overall near-term technical advantage and have gained good power this week. Silver bulls’ next upside price objective is closing July futures prices above solid technical resistance at the April high of $30.19. The next downside price objective for the bears is closing prices below solid support at $28.00. First resistance is seen at $30.19 and then at $30.50. Next support is seen at the overnight low of $29.655 and then at $29.25. Wyckoff’s Market Rating: 8.5.
