Gold, silver post rebounds from Friday's strong losses
(Kitco News) - Gold and silver futures prices are moderately higher in midday U.S. trading Monday. The safe-haven metals are catching a bid to start the trading week as there are now more cross-currents in the marketplace than seen recently. Some perceived bargain hunting is also featured in gold and silver after their prices scored sharp declines last Friday. February gold futures were last up $13.50 at $1,848.90 and March Comex silver was last up $0.563 at $25.205 an ounce.
Global stock markets were mostly weaker overnight. U.S. stock indexes slightly lower at midday. Trader and investor risk appetite is dented to start the trading week. A downbeat U.S. unemployment report last Friday and the aftermath of the U.S. Capitol riot have combined with the still-raging Covid-19 pandemic are weighing on the marketplace. The trading and investment climate “is a little bumpier” than at this time last week, said one market analyst.
The key “outside markets” today see the U.S. dollar index higher. Said one market analyst in a morning email dispatch: “ Shorting the dollar was the most recommended trade in currency markets heading into 2021. However, rising (U.S. government bond) yields could now lead to a rethinking of this strategy. If the yield curve becomes steeper and differentials become much wider, expect to see a strong recovery in the dollar despite the new billions in expected stimulus. According to the latest CFTC data, we are already seeing a trimming of long positions in major currencies (futures) against the greenback.”
Meantime, Nymex crude oil futures prices are slightly weaker and are trading around $52.25 a barrel. Mild profit taking is featured after crude oil prices last Friday hit a 10-month high.
The benchmark U.S. 10-year Treasury note yield is currently fetching 1.103%.
Technically, February gold futures prices hit a five-week low early on today. The gold bulls have lost their overall near-term technical advantage with Friday’s big losses. A five-week-old price uptrend on the daily bar chart was soundly negated Friday. Bulls’ next upside price objective is to produce a close above solid resistance at last week’s high of $1,962.50. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at today’s high of $1,856.00 and then at $1,875.00. First support is seen at last week’s low of $1,827.80 and then at today’s low of $1,817.10. Wyckoff's Market Rating: 5.0
March silver futures prices hit a three-week low early on today. Silver futures bulls have lost their overall near-term technical advantage. A five-week-old price uptrend on the daily bar chart was soundly negated Friday. Silver bulls' next upside price objective is closing prices above solid technical resistance at last week’s high of $29.105 an ounce. The next downside price objective for the bears is closing prices below solid support at $24.00. First resistance is seen at today’s high of $25.595 and then at $26.000. Next support is seen at $25.00 and then at last week’s low of $24.53. Wyckoff's Market Rating: 5.0.
March N.Y. copper closed down 1,125 points at 356.15 cents today. Prices closed nearer the session low today on profit taking after hitting an eight-year high last Friday. The copper bulls still have the solid overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 375.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 345.00 cents. First resistance is seen at 360.00 cents and then at 365.00 cents. First support is seen at today’s low of 355.25 cents and then at 352.50 cents. Wyckoff's Market Rating: 7.5.