Gold prices weaker as marketplace Tues. downplays coronavirus
(Kitco News) - Gold prices are moderately down in early U.S. futures trading Tuesday. On this day the global marketplace has decided to brush off the coronavirus outbreak that continues to spread, which has in turn put some pressure on safe-haven gold and silver prices. February gold futures were last down $6.80 an ounce at 1,572.70. March Comex silver prices were last down $0.07 at $17.715 an ounce.
Asian and European shares were mostly higher overnight. U.S. stock indexes are also pointed toward higher openings when the New York day session begins. While the coronavirus outbreak continues to spread, it is now spreading at a lower rate of growth of new cases, which has again somewhat assuaged the marketplace Tuesday. There are now over 1,000 reported dead in China and over 42,500 afflicted. On this day the marketplace reckons the spread of the illness is getting under control and that the Chinese government, working with the U.S. and other countries, will keep the outbreak from becoming a pandemic. Traders and investors have been calmed down before on this matter, only to become anxious again. Once again, traders are markets are fickle.
Focus of U.S. traders today will be on the testimony from Federal Reserve Chairman Jerome Powell to a House of Representatives financials services committee. Several other Federal Reserve officials are scheduled to give speeches Tuesday.
The key outside markets today see crude oil prices higher and trading around $50.30 a barrel. Meantime, the U.S. dollar index is slightly weaker overnight after hitting a nine-month high Monday.
U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, the NFIB small business index.
Technically, the gold bulls have the overall near-term technical advantage and have stabilized the market. Bulls are working on restarting a nearly three-month-old price uptrend on the daily chart. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at $1,600.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,550.00. First resistance is seen at the overnight high of $1,576.40 and then at this week’s high of $1,580.50. First support is seen at the overnight low of $1,569.10 and then at $1,563.50. Wyckoff's Market Rating: 6.5
March silver futures bulls and bears are on a level overall near-term technical playing field amid recent choppy trading. The recent “collapse in volatility” suggests a much bigger move is right on the horizon. However, a downtrend line is still in place on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is seen at $17.875 and then at $18.00. Next support is seen at last week’s low of $17.465 and then at the January low of $17.28. Wyckoff's Market Rating: 5.0.