Gold, silver gain as equities waver on inflation worries
(Kitco News) - Gold and silver futures prices are higher in midday U.S. trading Monday. The precious metals are catching a bit as the U.S. stock indexes are trading a bit lower amid heightened inflation worries. April gold futures were last up $12.50 at $1,820.40 and March Comex silver was last up $0.565 at $23.04 an ounce.
Global stock markets were mixed overnight. U.S. stock indexes are slightly lower at midday. While focus is on in corporate earnings reports which have been generally upbeat, Friday’s surprisingly strong U.S. jobs report also has traders and investors focusing more keenly on Federal Reserve policy, with some market watchers now thinking the Fed will hike its key Fed funds rate by 0.5% in March. Rising inflation has been historically bullish for the metals, as a hedge against inflation.
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The key outside markets today see crude oil prices lower and trading around $91.25 a barrel after prices Friday hit a seven-year high. Oil traders are eyeing $100-a-barrel crude in the not-too-distant future. The U.S. dollar index is a bit firmer at midday, following recent strong losses. The U.S. Treasury 10-year note yield is presently fetching 1.925%.
Technically, April gold futures bulls have the overall near-term technical advantage. Bulls' next upside price objective is to produce a close above solid resistance at the January high of $1,856.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the January low of $1,780.60. First resistance is seen at $1,825.00 and then at $1,835.40. First support is seen at today’s low of $1,807.50 and then at $1,800.00. Wyckoff's Market Rating: 6.0
March silver futures bears have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $24.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the December low of $21.41. First resistance is seen at $23.25 and then at $23.48. Next support is seen at today’s low of $22.50 and then at $22.25. Wyckoff's Market Rating: 3.5.
March N.Y. copper closed up 515 points at 443.60 cents today. Prices closed nearer the session low today. The copper bulls have the slight overall near-term technical advantage amid recent choppy trading. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the January high of 460.10 cents. The next downside price objective for the bears is closing prices below solid technical support at the January low of 428.20 cents. First resistance is seen at 450.00 cents and then at today’s high of 451.95 cents. First support is seen at 440.00 cents and then at 437.00 cents. Wyckoff's Market Rating: 5.5.