() – Gold and silver prices are holding moderate gains in midday U.S. trading Wednesday. Short covering and perceived bargain buying are featured after prices hit 2.5-month lows Tuesday. Falling U.S. Treasury bond yields this week are also a minor positive for the precious metals markets. However, gains in gold and silver are still being limited at mid-week by bearish near-term technical charts and scant risk aversion in the marketplace as the first half of 2021 draws to a close today. August gold futures were last up $6.60 at $1,770.40 and September Comex silver was last up $0.244 at $26.145 an ounce.
The U.S. economic data point of the day was the ADP national employment report for June, which came in at up 692,000 jobs—a bit higher than the 550,000 jobs gain expected. That report is a precursor to Friday morning’s employment situation report for June from the Labor Department—arguably the most important U.S. economic data point of the month. The key non-farm payrolls number is forecast to come in at up 700,000 compared to a rise of 559,000 in May. The unemployment rate is seen at 5.6% versus 5.8% in May.
Global stock markets were mixed to weaker overnight. The U.S. stock indexes are mixed at midday. Today is the last trading day of the month and of the quarter, which makes it an extra important trading day from a technical perspective.
The key outside markets today see the U.S. dollar index solidly higher. Nymex crude oil futures are higher and trading around $73.75 a barrel. Energy traders are awaiting Thursday’s OPEC meeting. The yield on the benchmark U.S. Treasury 10-year note is presently fetching 1.46%.
Technically, the gold bears have the firm overall near-term technical advantage. A five-week-old price downtrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at Tuesday’s high of $1,779.20 and then at this week’s high of $1,786.10. First support is seen at this week’s low of $1,750.10 and then at $1,735.00. Wyckoff’s Market Rating: 3.5
The silver bears have the firm overall near-term technical advantage. A five-week-old price downtrend is in place on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $27.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at last week’s high of $26.415 and then at $26.59. Next support is seen at today’s low of $25.80 and then at this week’s low of $25.58. Wyckoff’s Market Rating: 3.5.
September N.Y. copper closed up 225 points at 428.65 cents today. Prices closed near mid-range today. The copper bulls have the slight overall near-term technical advantage. However, a six-week-old downtrend is in place on the daily bar chart, but now just barely. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 450.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 400.00 cents. First resistance is seen at last week’s high of 433.55 cents and then at 435.00 cents. First support is seen at this week’s low of 420.30 cents and then at the June low of 409.40 cents. Wyckoff’s Market Rating: 5.5.
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