Gold sees profit taking, silver soars to 13-year high
NEW YORK (June 5)
Gold prices are lower in midday trading Thursday, on profit-taking pressure from the shorter-term futures traders after hitting a four-week high early on. Silver prices are sharply up and hit a 13-year high. Risk appetite in the general marketplace is still shaky, which continues to produce safe-haven buying of gold and silver. August gold was last down $22.60 at $3,376.20. July silver prices were last up $1.112 at $35.75.
Traders and investors are awaiting what is arguably the most important U.S. data point of the month: Friday morning's May employment situation report from the Labor Department. The key non-farm payrolls number is seen up 125,000 jobs, compared to a rise of 177,000 in the April report. The big downside miss in Wednesday's ADP national employment report has many market participants pensive, wondering if Friday's jobs report will also be a downside miss.
In overnight news, the Swiss-Singapore-based commodity trading house Trafigura warned of near-term commodity market volatility due to geopolitical and macroeconomic instability, and the threat of increasing inflation. The firm expects the higher volatility to last a while.
The key outside markets today see the U.S. dollar index slightly down. Nymex crude oil futures prices are firmer and trading around $63.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at around 4.4%.
Technically, August gold futures bulls have the solid overall near-term technical advantage. Bulls' next upside price objective is to produce a close above solid resistance at the May high of $3,477.30. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,300.00. First resistance is seen at $3,400.00 and then at today's high of $3,427.70. First support is seen at $3,350.00 and then at this week'st low of $3,319.40. Wyckoff's Market Rating: 7.5.
July silver futures bulls have the strong overall near-term technical advantage after seeing a bullish upside "breakout" from a trading range on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $37.50. The next downside price objective for the bears is closing prices below solid support at $34.00. First resistance is seen at $36.00 and then at the overnight high of $36.15. Next support is seen at $35.50 and then at $35.00.
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