Gold hit hard by little risk aversion, bounce in greenback
(Kitco News) - Gold futures prices are trading sharply lower in midday U.S. action Monday and have fallen back below the key $1,800.00 level. “Risk-on” trader and investor attitudes and a rebound in the U.S. dollar index today worked against the safe-haven metal. Silver prices are trading just lightly down amid some media and analyst reports that are touting silver as the better investment than gold, at present. April gold futures were last down $28.30 at $1,795.00 and March Comex silver was last down $0.068 at $27.27 an ounce.
Global stock markets were mostly firmer overnight. Mainland China markets remain closed for the Lunar New Year holiday. U.S. stock indexes are mixed at midday on some mild profit taking after hitting new record highs overnight. U.S. markets were closed Monday for the President’s Day holiday. A U.S. big government stimulus package likely coming to Americans in the spring and falling rates of Covid-19 infections at the same time vaccinations in the U.S. are still ramping up have traders and investors still in a “risk-on” frame of mind early this week.
Bitcoin prices hit another record high Tuesday and hit $50,000 before backing off a bit. The keener interest in Bitcoin and the other crypto currencies is also likely taking away some of the investor interest in the precious metals markets as a safe-haven store of value.
The key “outside markets” today see the U.S. dollar index trading lower and hitting a three-week low. Meantime, Nymex crude oil futures prices are slightly firmer and trading around $59.60 a barrel. The benchmark 10-year U.S. Treasury note yield is currently fetching 1.25%.
Technically, gold futures bears have the overall near-term technical advantage and gained fresh power today. Prices are in a six-week-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,856.60. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the February low of $1,784.60. First resistance is seen at $1,800.00 and then at $1,820.00. First support is seen at today’s low of $1,788.10 and then at $1,784.60. Wyckoff's Market Rating: 3.5
March silver futures bulls still have the overall near-term technical advantage amid a price uptrend in place 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 $26.00. First resistance is seen at today’s high of $28.075 and then at $28.50. Next support is seen at last week’s low of $26.75 and then at $26.50. Wyckoff's Market Rating: 6.5.
March N.Y. copper closed up 405 points at 382.90 cents today. Prices closed nearer the session low today and hit a contract and eight-year high. The copper bulls have the strong overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 390.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 365.00 cents. First resistance is seen at today’s contract high of 384.50 cents and then at 387.50 cents. First support is seen at today’s low of 379.50 cents and then at 375.00 cents. Wyckoff's Market Rating: 9.0.