(Kitco News) – Gold and silver prices are sharply lower and at multi-week lows in midday U.S. trading Tuesday. The bears are confident today amid a rally in the U.S. dollar index, lower crude oil prices and rising bond yields. Chart-based bears are also pressing their case amid the very weak near-term technical postures for both metals. Furthermore, trader and investor risk appetite remains generally upbeat enough to keep the global stock markets buoyant. April gold futures were last down $30.20 at $1,682.00 and May Comex silver was last down $0.681 at $24.09 an ounce.
Global stock markets were near steady to mostly firmer overnight. U.S. stock indexes are weaker at midday. Still, risk aversion is not keen Tuesday following a bit of concern Monday regarding the unwinding of stock positions of a big investment fund, Archegos, after that firm became over-leveraged. A few individual stocks have been impacted but not the general stock and financial markets—at least not yet. Most market watchers reckon the matter will fade away with no contagion effect.
Traders and investors are generally upbeat amid a strengthening U.S. economy, more and more people getting the Covid vaccine, and with President Biden is set to unveil on Wednesday the first of two expected portions of the next phase of his U.S. economic agenda. That package would cost $3 trillion to $4 trillion. However, somewhat tempering enthusiasm in the marketplace is an uptick in Covid infections in Europe and now the U.S.
The key outside markets today see the U.S. dollar index higher and hitting another 4.5-month high overnight. Nymex crude oil prices are lower and trading around $60.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 1.772%–hitting a 14-month high overnight.
Technically, April gold futures hit a three-week low today. The gold bears have the solid overall near-term technical advantage and gained more power today. Bulls’ next upside price objective is to produce a close above solid resistance at this week’s high of $1,732.60. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the March low of $1,673.30. First resistance is seen at $1,700.00 and then at today’s high of $1,712.60. First support is seen at $1,673.30 and then at $1,660.00. Wyckoff’s Market Rating: 2.5
May silver futures prices hit a 3.5-month low today. The silver bears have the firm overall near-term technical advantage. Prices are in a two-month-old downtrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $25.50 an ounce. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at today’s high of $24.77 and then at $25.00. Next support is seen at $24.00 and then at $23.75. Wyckoff’s Market Rating: 3.0.
May N.Y. copper closed down 565 points at 397.80 cents today. Prices closed nearer the session low today. The copper bulls have the overall near-term technical advantage. However, prices are in a five-week-old downtrend on the daily bar chart. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 420.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the March low of 384.90 cents. First resistance is seen at this week’s high of 408.25 cents and then at 410.50 cents. First support is seen at last week’s low of 394.20 cents and then at 390.00 cents. Wyckoff’s Market Rating: 6.5.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.