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Gold, silver down as stock markets stabilize

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(Kitco News) - Gold and silver prices are lower in midday U.S. trading Monday, pressured in part by some fresh chart-based selling and by global stock markets that started out the trading week steady to mostly firmer Monday. Bond yields declining a bit Monday worked more in favor of the stock market bulls. April gold futures were last down $3.80 at $1,737.90 and May Comex silver was last down $0.561 at $25.76 an ounce.

Global stock markets were mixed overnight. U.S. stock indexes are higher at midday. There is not a lot of risk aversion in the global marketplace at present and that's bearish for the safe-haven metals. The Turkish lira dropped around 10% against the U.S. dollar Monday following the abrupt firing of Turkey's top central bank official Saturday by Turkey's president. While this news has not significantly impacted the currency and financial markets, traders will keep a close eye on the Turkish lira in the near term.

The key "outside markets" today see Nymex crude oil futures prices a bit weaker and trading around $61.30 a barrel. Meantime, the U.S. dollar index is also weaker today. The U.S. Treasury 10-year note yield is fetching 1.65% Monday morning after hitting 1.75% last week.

Live 24 hours gold chart [Kitco Inc.]

Technically, April gold futures bears have the overall near-term technical advantage. However recent price gains suggest a market bottom is in place, as a price downtrend line on the daily bar chart has been negated. Bulls' next upside price objective is to produce a close above solid resistance at $1,775.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the March low of $1,673.30. First resistance is seen at today's high of $1,747.00 and then at the March high of $1,754.20. First support is seen at today's low of $1,726.40 and then at last week's low of $1,716.60. Wyckoff's Market Rating: 3.5

Live 24 hours silver chart [ Kitco Inc. ]

May silver futures bears have the overall near-term technical advantage. Prices are in a seven-week-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $27.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the March low of $24.845. First resistance is seen at $26.00 and then at today's high of $26.35. Next support is seen at today's low of $25.45 and then at $25.00. Wyckoff's Market Rating: 4.0.

May N.Y. copper closed up 185 points at 413.20 cents today. Prices closed nearer the session high today. The copper bulls have the firm overall near-term technical advantage. However, a 12-month-old uptrend on the daily bar chart has stalled out, at least temporarily. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the February high of 437.55 cents. The next downside price objective for the bears is closing prices below solid technical support at the March low of 384.90 cents. First resistance is seen at 415.70 cents and then at last week's high of 419.00 cents. First support is seen at today's low of 4.0760 and then at last week's low of 401.05 cents. Wyckoff's Market Rating: 7.0.

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.