Gold Price Up On Friendly Outside Market Forces

New York (May 22)  Gold prices were ending the U.S. day session moderately higher Monday afternoon, boosted by a lower U.S. dollar index and firmer crude oil prices. June Comex gold was last up $6.40 an ounce at $1,260.10. July Comex silver was last up $0.364 at $17.155 an ounce.

The key outside markets on Monday saw the U.S. dollar index down and hitting another six-month low. The dollar index bears remain in firm near-term technical control. Meantime, Nymex crude oil futures prices were firmer and hit a four-week high. Oil prices have trended solidly higher recently, to suggest sideways, or sideways-to-higher, price action in the near term. Thursday’s OPEC meeting is expected to see the cartel continue its lower production quotas that were implemented last fall.

Major focal points of market watchers this week are the Federal Reserve’s FOMC minutes released on Wednesday afternoon and an OPEC meeting that begins Thursday. President Trump’s full fiscal year 2018 budget is due out sometime this week. The U.S. economic data pace picks up strongly as the week progresses.

Technically, June gold futures prices closed near the session high today. The gold bulls have the slight overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at last week’s low of $1,226.80. First resistance is seen at last week’s high of $1,265.00 and then at $1,268.00. First support is seen at $1,250.00 and then at 1,241.50. Wyckoff's Market Rating: 5.5

July silver futures prices closed near the session high and hit a four-week high today. The silver market bears still have the overall near-term technical advantage. However, the bulls have momentum to suggest a market bottom is in place. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $18.00 an ounce.

Source: KitcoNews