Gold sees price rebound from Friday sell off

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(Kitco News) – Gold prices are modestly up in early U.S. trading Monday. The bulls have stabilized prices after last Friday’s sharp sell off from a 13-month high scored last Thursday. Friday’s downside price action in gold and silver are so far just normal downside corrections in uptrends that remain strong. June gold was last up $5.80 at $2,021.60 and May silver is up $0.07 at $25.52.

Global stock markets were mostly higher in quieter action overnight. U.S. stock indexes are pointed toward mixed openings when the New York day session begins. The U.S. stock indexes are still in price uptrends on the daily bar charts and near their highs for this year.

In overnight news, China’s central bank kept its interest rates and monetary policy unchanged.

The key outside markets today see the U.S. dollar index firmer. Nymex crude oil prices are a bit weaker and trading around $82.25 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.535%.

U.S. economic data due for release Monday includes the Empire State manufacturing survey, the NAHB housing market index and Treasury international capital data.

Technically, the gold futures bulls still have the solid overall near-term technical advantage. Prices are in a five-week-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at the record high of $2,078.80, basis nearby futures. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the April low of $1,965.90. First resistance is seen at $2,031.70 and then at $2,050.00. First support is seen at today’s low of $2,008.20 and then at $2,000.00. Wyckoff’s Market Rating: 8.0

The silver bulls still have the solid overall near-term technical advantage. Prices hit a 13-month high Friday. Prices are in a steep uptrend on the daily bar chart. Silver bulls’ next upside price objective is closing May futures prices above solid technical resistance at $27.50. The next downside price objective for the bears is closing prices below solid support at $24.00. First resistance is seen at the overnight high of $25.71 and then at $26.00. Next support is seen at the overnight low of $25.29 and then at $25.00. Wyckoff’s Market Rating: 8.0.