Gold, silver prices up on notions stock, financial mkts stabilizing
(Kitco News) - Gold and silver prices are trading up at midday Thursday. There are now some early clues that a
severely battered global marketplace may be stabilizing. The U.S. stock indexes were higher as of this writing, crude oil prices were sharply higher, and many other raw commodity markets were posting solid rebounds. A more solid clue that the bleeding in most markets has stopped would be good rallies in the global stock markets on Friday, to end a bruising trading week. April gold futures were last up $4.10 an ounce at $1,482.20. May Comex silver prices were last up $0.358 at $12.13 an ounce.
Global stock markets were mixed in overnight trading, with Asian shares mostly down and European shares mostly up. China did report overnight that there were no new reported cases of the illness in that country Thursday, although many wonder about the outbreak statistics’ veracity coming from the Chinese government. In a news conference today, President Trump was more fiery and upbeat, which also appeared to lift some trader and investor spirits.
In overnight news, the European Central Bank stepped in and said it would buy 750 billion Euros in securities to liquify the European financial system. The ECB labeled the effort the “Pandemic Emergency Purchase Program.” The Bank of England also eased its monetary policy further on Thursday. After the markets closed Wednesday the Federal Reserve added still more short-term liquidity to the U.S. financial system. The U.S. government is set to unveil a financial assistance package to American citizens and businesses.
The U.S. dollar index is higher again in early U.S. trading and hit another three-year high. The world marketplace has seen confirmation that the greenback is still king when times get really tough. Nearly everyone who can wants to hold U.S. dollars as a safe-haven store of value. The big grab for greenbacks is perpetuating dislocations in the financial markets but there is a positive element from this week’s reaffirmation of supreme global confidence in the U.S. currency: The U.S. is about to possibly double its already record-large federal deficit due to expected company bailouts and financial assistance packages. At first blush, it appears the world’s investors will be very willing to purchase that big influx of U.S. government debt issuance.
The U.S. Treasury bond futures market has rebounded strongly Thursday, from Wednesday’s major sell off. The benchmark U.S. 10-year Treasury note yield was trading around 1.07%--down from levels seen Wednesday.
Nymex crude oil futures prices are sharply up at midday after hitting an 18-year low of $20.06 a barrel on Wednesday. Crude prices are currently trading around $25.00 a barrel. One bright spot for the U.S. consumer is that unleaded gasoline futures wholesale price from the refinery is now trading at 69 cents a gallon—suggesting much lower gasoline prices at the pump heading into spring and summer.
Technically, April gold futures bears have the firm overall near-term technical advantage amid a steep two-week-old price downtrend in place. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,550.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at this week’s low of $1,450.90. First resistance is seen at $1,500.00 and then at $1,525.00. First support is seen at today’s low of $1,460.10 and then at $1,450.90. Wyckoff's Market Rating: 3.0
May silver futures bears have the solid overall near-term technical advantage as a steep price downtrend is in place on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $14.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $11.00. First resistance is seen at $13.00 and then at $13.23. Next support is seen at this week’s low of $11.64 and then at $11.50. Wyckoff's Market Rating: 1.5.
May N.Y. copper closed up 310 points at 218.20 cents today. Prices closed nearer the session high today on short covering after hitting a three-year low early on. The big rebound off the session spike low suggests the bears are now exhausted and good follow-through buying on Friday would suggest a market bottom is in place. The copper bears have the solid overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at Wednesday’s high of 234.15 cents. The next downside price objective for the bears is closing prices below solid technical support at today’s low of 197.25 cents. First resistance is seen at 220.00 cents and then at 222.50 cents. First support is seen at 210.00 cents and then at 205.00 cents. Wyckoff's Market Rating: 1.0.