Gold, silver see safe-haven buying as "markets on war footing"
(Kitco News) - Gold and silver prices are higher in midday U.S. trading Tuesday. Gold prices hit an eight-month high today and silver a four-week high as risk aversion is elevated and geopolitics are on the front burner of the marketplace. Gold and silver bulls are feeling confident at present, amid safe-haven demand being stronger and the charts being friendly. April gold futures were last up $5.00 at $1,904.80 and March Comex silver was last up $0.298 at $24.29 an ounce.
Traders came back from a three-day U.S. markets-holiday weekend to see that Russia sent troops into breakaway parts of Ukraine, with Russian President Putin calling it a "peace-keeping" mission. The U.S. and the West have slapped new sanctions on Russia, including Germany halting certification on a key oil pipeline into Russia. The U.S. says Russia now has 190,000 troops at the Ukrainian border. This matter is likely to remain on the front burner of the marketplace for some time to come. "Markets are on war footing" was a news headline from Barrons today.
Global stock markets were mostly lower overnight. The U.S. stock indexes are lower at midday and the bears have the near-term technical advantage. That's also aiding the metals markets.
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The key outside markets today see Nymex crude oil prices higher, hitting a 7.5-year high of $96.00 a barrel overnight and presently trading around $93.00 a barrel. The U.S. dollar index is near steady at midday. The benchmark U.S. 10-year Treasury note is presently yielding 1.925%. U.S. Treasury yields are falling early this week, on safe-haven demand for U.S. debt.
Technically, April gold futures prices hit an eight-month high today. Bulls have the solid overall near-term technical advantage. Prices are in a steep uptrend on the daily bar chart. Bulls' next upside price objective is to produce a close above solid resistance at the May 2021 high of $1,922.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,850.00. First resistance is seen at today's high of $1,918.30 and then at $1,922.40. First support is seen at today's low of $1,889.70 and then at $1,882.50. Wyckoff's Market Rating: 8.5
March silver futures prices hit a four-week high today. The silver bulls have the overall near-term technical advantage. Bulls are in a fledgling price uptrend on the daily chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the January high of $24.755 an ounce. The next downside price objective for the bears is closing prices below solid support at $22.50. First resistance is seen at today's high of $24.385 and then at $24.50. Next support is seen at $24.00 and then at today's low of $23.71. Wyckoff's Market Rating: 6.5.
March N.Y. copper closed down 150 points at 450.45 cents today. Prices closed near mid-range today. The copper bulls have the overall near-term technical advantage. Prices are in a choppy, two-month-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the February high of 470.85 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 today's high of 454.45 cents and then at last week's high of 458.95. First support is seen at last week's low of 444.40 cents and then at 440.00 cents. Wyckoff's Market Rating: 6.0.