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Gold, silver prices sharply down as buyers spooked by crude oil

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(Kitco News) -  Gold and silver futures prices are trading sharply lower in early U.S. trading Tuesday. The world marketplace is still buzzing and even shaken after Monday’s astonishing trading action in Nymex crude oil futures, in which the expiring May contract fell deep into negative price territory by the close. Oil prices are sharply down again today, in the active futures contracts. The unprecedented price action in crude oil futures so far this week has most buyers in many commodity markets, including the metals, opting to stand on the sidelines at present. June gold futures were last down $33.20 an ounce at $1,678.20. May Comex silver prices were last down $0.804 at $14.81 an ounce.

Global stock markets were mostly lower in overnight trading. U.S. stock indexes are pointed toward solidly lower openings when the New York day session begins. This is a busy week for U.S. corporate earnings, which are very likely to remind traders and investors of debilitating effects of the Covid-19 pandemic, even as some parts of the North American economy may be set to reopen soon.

The important outside markets today see June Nymex crude oil futures down around $4.00, or 35%, at $16.40. Brent crude oil futures are trading just above $18.00 and have dropped over 25% this week. The U.S. dollar index higher on safe-haven demand. The 10-year U.S. Treasury note yield is trading around 0.575% this morning—well down from levels seen recently and a sign of “flight to quality” amid higher anxiety in the marketplace at present.

U.S. economic reports due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, and existing home sales.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls have the firm overall near-term technical advantage amid price uptrends in place on the daily, weekly and monthly charts. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,650.00. First resistance is seen at $1,708.00 and then at $1,725.00. First support is seen at the overnight low of $1,685.00 and then at $1,675.00. Wyckoff's Market Rating: 7.0

Live 24 hours silver chart [ Kitco Inc. ]

May silver futures bulls and bears are on a level overall near-term technical playing field as a price uptrend on the daily bar chart has been negated. Silver bulls' next upside price objective is closing prices above solid technical resistance at the April high of $16.30 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.00. First resistance is seen at $15.00 and then at the overnight high of $15.56. Next support is seen at $14.50 and then at $14.25. Wyckoff's Market Rating: 5.0.

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.