Gold, silver slightly up in quieter trading
Gold and silver prices are mildly higher in midday U.S. trading Wednesday. The precious metals markets are getting a very modest boost from slightly friendly outside markets on this day that include a slightly lower U.S. dollar index and firmer crude oil prices. However, gains in both metals were limited by rising U.S. Treasury yields today. April gold was last up $3.10 at $1,887.80 and March silver was up $0.183 at $22.35.
The gold and silver market bulls have lost steam the past week and are working to stabilize prices, which they can correctly argue has occurred at mid-week. Still, both metals markets remain very wobbly.
The marketplace on Tuesday afternoon saw Fed Chairman Powell at a Washington, D.C. economic club meeting reiterate that U.S. inflation has started to come down but has a long way to drop to meet the Fed's inflation objectives. Powell was pressed on last Friday's strong jobs report possibly changing Fed policy to more hawkish, but Powell brushed that notion off, at first. However, at the end of his remarks he said more strong U.S. economic data could force the Fed to raise rates more than it expects at present. Stock and financial markets gyrated during and right after his comments but at the end of the day Tuesday, Powell's remarks were deemed as not surprising and did not have a major, lasting impact on markets.
Gold price to hold the line at $1,800 but investors will have to weigh the costs as real rates remain positive – CIBC
Global stock markets were mixed overnight. U.S. stock indexes are lower at midday, which is also providing a bit of underlying support for the safe-haven metals.
The key outside markets see the U.S. dollar index just slightly weaker. The yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.681%. Meantime, Nymex crude oil futures prices are up just a bit and trading around $77.50 a barrel.
Technically, April gold futures prices hit a four-week low Monday. Bulls still have the overall near-term technical advantage. However, a bear flag pattern has now formed on the daily bar chart. Bulls' next upside price objective is to produce a close above solid resistance at the February high of $1,975.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,850.00. First resistance is seen at $1,900.00 and then at $1,915.50. First support is seen at this week's low of $1,873.20 and then at $1,850.00. Wyckoff's Market Rating: 6.5
March silver futures prices hit a two-month low Tuesday. The silver bulls have the slight overall near-term technical advantage but need to show fresh power soon to keep it. Prices have seen a bearish downside "breakout" from a sideways trading range at higher levels. Silver bulls' next upside price objective is closing prices above solid technical resistance at $23.50. The next downside price objective for the bears is closing prices below solid support at $21.00. First resistance is seen at this week's high of $22.635 and then at $23.00. Next support is seen at this week's low of $22.065 and then at $22.00. Wyckoff's Market Rating: 5.5.
March N.Y. copper closed down 500 points at 403.00 cents today. Prices closed nearer the session low. The copper bulls have the overall near-term technical advantage but are fading. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the January high of 435.50 cents. The next downside price objective for the bears is closing prices below solid technical support at 380.00 cents. First resistance is seen at today's high of 411.65 cents and then at 420.00 cents. First support is seen at this week's low of 399.30 cents and then at 390.00 cents. Wyckoff's Market Rating: 6.5. By Jim Wyckoff
For Kitco New
Tim Moseley