(Kitco News) – Gold prices are slightly lower and silver prices solidly down in early U.S. trading Thursday. Some profit-taking pressure from the shorter-term futures traders is featured today, but there is a bullish underlying tone in the safe-haven metals as global bond markets have become a bit wobbly. June gold was last down $6.00 at $3,307.50. July silver prices were last down $0.761 at $32.885.
The marketplace is jittery late this week following a U.S Treasury 20-year bond auction at midday Wednesday that was not well-received by investors. This was a big deal for the marketplace. Barron’s today said: “The bond market is the older, wiser sibling of the stock market, and it doesn’t often have a moment. But when it does, watch out.” The 30-year U.S. Treasury bond yield has pushed above 5% and to the highest level since October of 2023. After the shaky U.S. bond auction Wednesday, Japanese bond yields surged, with the JGB 30-year yield rising to a record high of 3.1872%. Bond markets around the globe also shuddered after the U.S. bond auction Wednesday.
The U.S. Treasury market also does not like the new Trump administration tax and spending bill advancing through Congress. The Congressional Budget Office said the bill will increase the U.S. budget deficit by $3.8 trillion between 2026-2034.
Bitcoin surged to a record high above $110,000 overnight as the crypto market surged on dislocations across traditional financial assets.
Asian and European stock markets were lower in overnight trading. U.S. stock indexes are pointed to narrowly mixed openings today in New York.
The key outside markets today see the U.S. dollar index firmer. Nymex crude oil futures prices are lower and trading around $60.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.6%.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the Chicago Fed national activity index, the U.S. flash and services purchasing managers indexes, existing home sales and the Kansas City Fed manufacturing survey.
Technically, June gold futures bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,400.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the May low of $3,123.30. First resistance is seen at the overnight high of $3,346.80 and then at $3,375.00. First support is seen at the overnight low of $3,282.20 and then at $3,250.00. Wyckoff’s Market Rating: 6.5.
July silver futures bulls have the slight overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $34.015. The next downside price objective for the bears is closing prices below solid support at the May low of $31.78. First resistance is seen at $33.50 and then at $34.015. Next support is seen at the overnight low of $32.74 and then at $32.50. Wyckoff’s Market Rating: 5.5.
Jim Wyckoff has spent over 25 years involved with the stock, financial and commodity markets. He was a financial journalist with the FWN newswire service for many years, including stints as a reporter on the rough-and-tumble commodity futures trading floors in Chicago and New York. As a journalist, he has covered every futures market traded in the U.S., at one time or another.
Jim is the proprietor of the “Jim Wyckoff on the Markets” analytical, educational and trading advisory service. Jim also worked as a technical analyst for Dow Jones Newswires and as the senior market analyst with TraderPlanet.com. Jim is also a consultant with the highly respected “Pro Farmer” agricultural advisory service. Jim was also the head equities analyst at CapitalistEdge.com. He received his degree from Iowa State University in Ames, Iowa, where he studied journalism and economics.
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