Gold and silver up, but gains fade after upbeat US economic data


Editor’s Note: With such volatility in the markets, stay up to date with daily news! Get our quick roundup of today’s must-see news and expert opinion in minutes. Register here!


(Kitco News) – Gold and silver prices edged higher on Tuesday at midday in the U.S. and lost strong early gains after stronger than expected U.S. economic data and rising U.S. bond yields . Metals were supported by rising crude oil prices that hit a nine-week high earlier in the day, and sharp daily losses in the US Dollar Index. However, crude oil prices retreated as the session progressed. June gold futures were last up $2.50 at $1,816.50. July Comex silver futures were last up $0.134 at $21.685 an ounce.

The US retail sales report for April showed an increase of 0.9%, which was close to market expectations. However, March retail sales were revised up to 1.4%. US April industrial production for March came in strong at 1.1% against expectations for a 0.5% rise. Following the release of these reports, the metals began to fall from their overnight highs.

US stock indices are up at midday. The market is more bullish on Tuesday following reports that China will start easing its lockdowns in major cities including Hong Kong and Shanghai.

The market will watch a scheduled Wall Street Journal interview with Fed Chairman Jerome Powell this afternoon. Traders and investors will be eager to see if Powell makes any comments on the timing aspects of Fed monetary policy and/or inflation, as well as the prospect of the US economy entering a recession.




Major outside markets are seeing lower Nymex crude oil futures prices today after hitting an early nine-week high, and are currently trading around $113.00 a barrel. Meanwhile, the US dollar index is lower. The yield on the 10-year US Treasury note is around 2.9%.

Technically, June gold futures are seeing a nine-week-old downward price trend in place on the daily bar chart. The bears have the strong overall short-term technical advantage. The Bulls’ next upside price objective is to produce a close above the strong resistance at $1,875.00. Bears next short-term downside price objective is to push futures prices below strong technical support at $1,750.00. First resistance is seen at today’s high of $1,834.80 and then at $1,850.00. First support is seen at $1,800.00 and then at this week’s low at $1,785.00. Wyckoff Market Rating: 3.0

24 hour live money chart [ Kitco Inc. ]

July silver futures see a strong downward price trend in place on the daily bar chart. The silver bears have the strong overall near-term technical advantage. The next upside price objective for silver bulls is to close prices above strong technical resistance at $23.00 per ounce. The next downside price objective for the bears is to close prices below the strong support at $20.00. The first resistance is seen at $22.00 and then at $22.50. The next support is seen at $21.50 and then at $21.00. Wyckoff Market Rating: 2.0.

New York Copper July closed 445 points higher at 423.50 cents today. Prices closed closer to the session low today. Copper bears have the strong overall short-term technical advantage. A downward price trend is still in place on the daily bar chart. The next upside price objective of the copper bulls is to push and close prices above strong technical resistance at 445.00 cents. The next downside price target for the bears is for prices to close below the strong technical support at 400.00 cents. First resistance is seen at today’s high of 428.35 cents 430.00 cents. First support is seen at today’s low of 420.30 cents and then at this week’s low of 413.35 cents. Wyckoff Market Rating: 2.5.



Warning: The opinions 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 the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.

Previous Business resilience: the only way out of a multifaceted economic crisis
Next May continues with a barrage of economic data