Gold, silver rally on bargain buying, friendly outside markets
(Kitco News) - Gold and silver futures prices are trading higher in midday U.S. dealings Monday, as some perceived bargain-basement buying is featured to start the trading week after both metals suffered significant losses last week. Some chart-based buying was also featured today as the near-term technical postures for both metals have improved a bit. April gold futures were last up $19.70 at $1,832.80 and March Comex silver was last up $0.536 at $27.555 an ounce.
Global stock markets were mostly higher overnight, with Asian stock indexes near record highs. U.S. stock indexes are higher at midday hit record highs again. Trader and investor attitudes remain “risk on” to start the trading week. “Slowing coronavirus infections, continued rollout of vaccines and anticipation of President Biden’s $1.9 trillion rescue package are keeping the bull market well and truly alive,” said one broker in a morning email dispatch. U.S. Treasury secretary Janet Yellen said Sunday the U.S. economy could see full employment by 2022 if Congress passes the proposed stimulus package.
In other news, Bitcoin-U.S. dollar prices are sharply higher and hit a new all-time high above $42,000 Monday. The BC bulls got an electric jolt to the upside when it was just announced that Tesla has invested $1.5 billion in Bitcoin and that the electric vehicle maker will incorporate Bitcoin into its operation. Gold and silver prices may have also gotten a boost by the Bitcoin surge, on notions that Bitcoin’s increasing popularity could erode the strong status of the U.S. dollar around the globe.
The key “outside markets” today see the U.S. dollar index slightly weaker after hitting a two-month high late last week. The greenback is still trending higher and many of the other major currencies are in near-term price downtrends now. Meantime, Nymex crude oil futures prices are higher, hit a 13-month high today, and are trading around $58.00 a barrel. Brent crude oil futures pushed above the $60.00 level overnight. The yield on the benchmark 10-year U.S. Treasury note stands at 1.195%, a post-pandemic high.
Technically, April gold futures bears still have the slight overall near-term technical advantage. Prices are in a four-week-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,878.90. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,771.30. First resistance is seen at today’s high of $1,840.60 and then at $1,850.00. First support is seen at today’s low of $1,807.30 and then at $1,800.00. Wyckoff's Market Rating: 4.5
March silver futures bulls still have the overall near-term technical advantage and are working to restart a price uptrend on the daily chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the February high of $30.25 an ounce. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at today’s high of $27.695 and then at $28.00. Next support is seen at $27.00 and then at $26.50. Wyckoff's Market Rating: 6.0.
March N.Y. copper closed up 395 points at 366.65 cents today. Prices closed nearer the session high today. The copper bulls have the solid overall near-term technical advantage and have regained upside momentum. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the January high of 373.40 cents. The next downside price objective for the bears is closing prices below solid technical support at 350.00 cents. First resistance is seen at today’s high of 367.45 cents and then at 370.00 cents. First support is seen at today’s low of 362.25 cents and then at 360.00 cents. Wyckoff's Market Rating: 7.0.