Gold and silver up as bulls riding the price uptrend

New York (Apr 23)  Gold and silver prices are are higher in early U.S. trading Friday, supported by bullish outside markets on this day that include a lower U.S. dollar index and firmer crude oil prices. Bulls are playing the near-term price uptrends in place on the daily bar charts. June gold futures were last up $9.80 at $1,791.90 and May Comex silver was last up $0.12 at $26.30 an ounce.

(Note: Kitco lost a highly valued colleague and dear friend with the passing of Peter Hug this week. They don't come any better than Peter--kind, humble and caring. RIP, great man.)

Global stock markets were mixed overnight. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins, on a rebound from selling pressure Thursday afternoon, on news President Biden will propose nearly doubling the capital gains tax rate on the rich to fund programs aimed at more economic equality for all Americans. For those earning $1 million or more, the new top rate, coupled with an existing surtax on investment income, means federal tax rates for wealthy investors could be as high as 43.4%. Republicans slammed the proposal. The U.S. stock indexes have wavered this week amid the conflict of a likely expanding U.S. economy in the months ahead, but with a pandemic that is still seriously impacting much of the world.

In overnight developments, the Eurozone April composite purchasing managers index (PMI) came in at 53.7 versus 53.2 in March, and was above market expectations. A reading above 50.0 suggest growth. The Euro zone manufacturing PMI was 63.3 in the same period.

In other news, Bitcoin has taken it on the chin this week, hitting a six-week low on Friday and trading below $50,000, after trading near $65,000 just a couple weeks ago. The phrase comes to mind, "easy come, easy go." Also, the gold and silver markets have rallied at the same time Bitcoin has sold off.

Also, it's difficult for stock, financial and currency market traders to ignore what is going on in the grain futures markets this week. Corn, soybean and wheat futures have rocketed to multi-year highs amid an expected surge in demand for grains from China and its booming economy. Surging grain prices are just one more in a string of clues (and it's a strong one) that global inflation is on the rise and may become untamable down the road.

The key outside markets today see the U.S. dollar index lower amid a near-term price downtrend in place. Nymex crude oil prices are modestly higher and trading around $61.65 a barrel. Meantime, the yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.56%.

U.S. economic data due for release Friday includes the U.S. flash manufacturing and services purchasing managers indexes (PMI), and new residential sales.

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 $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at last week's low of $1,723.20. First resistance is seen at this week's high of $1,798.40 and then at $1,800.00. First support is seen at Thursday's low of $1,777.10 and then at this week's low of $1,763.50.

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