Gold, silver hit by chart-based futures sellers
(Kitco News) - Gold and silver prices are are solidly lower in midday U.S. trading Monday, on technically related selling pressure from the shorter-term futures traders amid still-bearish near-term charts. The safe-haven metals bulls were disappointed as a mild "risk-off" marketplace mentality to start the trading week did not give gold or silver a decent bid. A stronger U.S. dollar index recently and rising bond yields today are also negative elements for the metals markets. April gold futures were last down $20.70 at $1,711.60 and May Comex silver was last down $0.374 at $24.74 an ounce.
The marketplace Monday is buzzing and still a bit nervous over news that a large investment fund, Archegos Capital Management, late last week quickly dumped $30 billion in holdings, including big positions in Viacom CBS and Discovery, possibly because the firm was over-leveraged and got margin calls. There was some concern about a contagion effect roiling the marketplace this week and some investment banks' stocks shares dropped sharply overnight, but so far the stock and financial markets, in general, are not reacting significantly to the matter. If the markets to see a contagion effect, gold and silver markets could quickly see bids coming in.
Global stock markets were near steady to firmer overnight. U.S. stock indexes are weaker at midday. Today is a holiday-shortened week for many countries that will see their markets closed on Friday to observe the Good Friday holiday ahead of Easter Sunday, including the U.S.
President Biden is set to unveil on Wednesday the first of two expected portions of the next phase of his U.S. economic agenda: a series of infrastructure proposals. The package would cost $3 trillion to $4 trillion and will likely include billions in new tax revenue.
The massive container ship that had been wedged in the Suez Canal, forcing its closure, has been floated and the canal is now operating, according to reports. Oil prices were pressured a bit on this news.
The key outside markets today see the U.S. dollar index near steady after hitting a 4.5-month high late last week. Nymex crude oil prices are slightly lower and trading around $61.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 1.687%.
U.S. economic data due for release Monday is light and includes the Texas manufacturing outlook survey.
Technically, April gold futures bears have the overall near-term technical advantage and have regained downside momentum. Bulls' next upside price objective is to produce a close above solid resistance at the March high of $1,757.40. 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 $1,732.60 and then at $1,740.00. First support is seen at today's low of $1,703.30 and then at $1,700.00. Wyckoff's Market Rating: 3.0
May silver futures bears have the overall near-term technical advantage. Prices are in a two-month-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $26.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the January low of $24.095. First resistance is seen at today's high of $25.15 and then at $25.50. Next support is seen at last week's low of $24.435 and then at $24.095. Wyckoff's Market Rating: 3.5.
May N.Y. copper closed down 425 points at 402.55 cents today. Prices closed nearer the session low today. The copper bulls have the overall near-term technical advantage. However, a 12-month-old uptrend on the daily bar chart has stalled out and prices are starting to trend down. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 420.00 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 today's high of 408.25 cents and then at 410.50 cents. First support is seen at 400.00 cents and then at last week's low of 394.20 cents. Wyckoff's Market Rating: 6.5.