Meanwhile, gold continues its attempts to settle above the resistance at $1900.
S&P 500 futures are swinging between gains and losses in premarket trading as the stock market continues to consolidate near record highs.
Yesterday, U.S. released the final reading of Manufacturing PMI report for May which indicated that Manufacturing PMI increased from 60.5 in April to 62.1 in May compared to analyst consensus of 61.5. However, stronger-than-expected Manufacturing PMI report was not sufficient enough to push stocks to new highs.
The 10-year Treasury yields have recently made an attempt to settle above the 20 EMA at 1.61% but failed to develop sufficient upside momentum and pulled back below 1.60% which is bullish for stocks. At the same time, it looks that some traders remain worried about inflation, and S&P 500 will need additional catalysts to more towards new highs.
WTI Oil Gains Ground As OPEC+ Reiterates Its Commitment To Gradual Production Increase
Yesterday, OPEC+ held its regular meeting and reiterated its existent commitment to the previous production schedule. OPEC+ will continue to follow its original plan to gradually return 2 million barrels per day (bpd) of oil production to the market.
OPEC+ stated that underperforming countries should compensate for their overproduction until the end of September 2021, which was also an expected development.
In total, initial reports about the outcome of the meeting were correct, and OPEC+ did not deliver any surprises. Meanwhile, WTI oil has managed to settle above the $68 level and looks ready to test the psychologically important $70 level which is bullish for oil-related stocks.
Gold Stays Close To The $1900 Level
Gold continues its attempts to gain additional upside momentum above the resistance level at $1900.
RSI remains in the overbought territory, but it has already pulled back from recent highs, so there is some room to gain additional momentum in case the right catalysts emerge.
If gold manages to settle above $1900, it will move towards the resistance at $1930 which will be bullish for gold mining stocks.