Gold and silver are seeing declines in prices when the dollar is rising

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(Kitco News) – Gold and silver prices fell moderately in early US trading Thursday, both hitting six-week lows overnight. The US dollar index recently rose, hitting a seven-week high overnight. This is a significant bearish development in the offshore metals market. The rise in US Treasury yields this week is also negative for precious metals. Gold was last down in June by $7.10 at $1,977.80, and silver in July fell by $0.197 at $23.70.

Asian and European stock markets mostly rose overnight. US stock indices are heading towards firmer openings when the New York daily session begins, after their healthy gains on Wednesday. The risk appetite of traders and investors increased late this week, which is also negative for the safe-haven metals. Talks to extend the US debt limit are said to be going better. Both President Joe Biden and House Speaker Kevin McCarthy have made optimistic comments about closing the deal before June 1st. It’s not without risks.” The story details that while debt reform is positive, potential negatives linger, including a still-upbeat Federal Reserve, recession fears, and US and European banking tensions.

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Today the major foreign markets are seeing the US dollar index rising and at its highest level in seven weeks. The dollar bulls have momentum. NYMEX Crude Oil prices are weaker and are trading around $72.50 a barrel. Meanwhile, the benchmark 10-year US Treasury yield is currently at 3.593%.

US economic data due for release on Thursday includes the weekly jobless claims report, Philadelphia Fed business survey, existing home sales and leading economic indicators.

Technically, the gold futures bulls have the overall near-term technical advantage but are fading away. The upward trend in the price has been invalidated on the daily bar chart. The price has started to move downwards on the daily bar chart. The next bullish price target for the bulls is to achieve a close in the June futures contract above the strong resistance at the May high of $2,085.40. The bears’ next bearish price target in the near term is pushing futures prices below the strong technical support level at $1,950.00. We see the first resistance at the overnight high of $1,988.80 and then $2,000.00. The first support is seen at the overnight low of $1,974.60 and then the April low of $1,965.90. Wyckoff Market Rating: 6.5

The Silver Bears have the overall technical advantage in the near term. The price is now heading downwards on the daily chart. The next upside price target for the silver bulls is for the July futures price to close above the strong technical resistance at $25.00. The next downtrend price target for the bears is to close the price below the strong support level at $23.00. We see first resistance at $24.00 and then this week’s high at $24.395. The next support is seen at today’s low of $23.575 and then $23.00. Wyckoff Market Rating: 4.0.