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Gold, silver gain as greenback backs off

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(Kitco News) - Gold and silver futures prices are firmer in midday U.S. trading Tuesday, on correctives bounces after gold hit a nine-month low overnight and silver notched a five-week low. The metals are also getting a bit of a lift at the U.S. stock indexes are slightly lower at midday. April gold futures were last up $12.60 at $1,735.50 and May Comex silver was last up $0.137 at $26.82 an ounce.

Global stock markets were mostly down overnight. U.S. stock indexes have paused after strong gains posted Monday. Government bond yields have generally pulled back a bit early this week, which has assuaged stock market traders for the moment. However, Asian markets were rattled overnight when a top banking official in China said the U.S. and other stock markets were in bubbles that are bound to eventually correct. The U.S. Treasury 10-year note is presently trading around 1.445% for its yield. Many veteran market watchers believe U.S. Treasury yields will continue to climb in the coming months.

In other overnight news, the Euro zone consumer price index for February came in at up 0.9% compared to a 0.9% gain in January. Once again, inflation data coming from a major global economy is nowhere near suggesting problematic price inflation down the road. However, inflation data later this year will probably be more indicative, if any major economies are indeed starting to run too hot.

The key “outside markets” today see Nymex crude oil futures prices firmer and trading around $60.85 a barrel. There is an OPEC meeting on Thursday that the marketplace will closely monitor. The U.S. dollar index is lower at midday today on a corrective pullback from recent gains.

Live 24 hours gold chart [Kitco Inc.]

Technically, April gold futures prices hit a nine-month low early on today. More short covering was featured today. The gold bears still have the solid overall near-term technical advantage. Prices are in a two-month-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at $1,750.00 and then at this week’s high of $1,757.40. First support is seen at $1,714.90 and then at today’s low of $1,704.60. Wyckoff's Market Rating: 3.0

Live 24 hours silver chart [ Kitco Inc. ]

May silver futures hit a five-week low early on today. The silver bulls have the slight overall near-term technical advantage but a five-week-old price uptrend on the daily chart has been negated. Silver bulls' next upside price objective is closing prices above solid technical resistance at $28.47 an ounce. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at this week’s high of $27.175 and then at $27.50. Next support is seen at $26.155 and then at $26.00. Wyckoff's Market Rating: 5.5.

May N.Y. copper closed up 935 points at 420.75 cents today. Prices closed near the session high today and scored a bullish “outside day” up on the daily bar chart. The copper bulls have the solid overall near-term technical advantage. Prices are in a 12-month-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 440.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 390.00 cents. First resistance is seen at 422.50 cents and then at 425.00 cents. First support is seen at 415.00 cents and then at 410.00 cents. Wyckoff's Market Rating: 8.5.

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.