Price gains for gold, silver as Biden visits NATO
(Kitco News) - Gold and silver prices are solidly higher in early U.S. trading Thursday, as marketplace risk aversion remains overall elevated amid the Russia-Ukraine war and its many implications for the world. Sharp gains in crude oil prices this week are also bullish for the metals markets. Traders on this day are brushing off rising bond yields. April gold futures were last up $15.20 at $1,952.40 and May Comex silver was last up $0.201 at $25.39 an ounce.
Global stocks markets were mixed overnight. The U.S. stock indexes are pointed toward firmer openings when the New York day session begins. The Russia-Ukraine war and its widespread market implications continues on the front burner. President Biden Thursday meets with NATO and EU leaders to discuss the war. The two-day summit will be held at NATO headquarters in Brussels.
There are some reports surfacing that Russian President Putin’s war is producing cracks in the Kremlin. The reports said the Russian central bank chief quit and has left the country, while another official wanted to resign but Putin would not allow it.
Reports said Russia’s stock market has partially reopened and was trading higher, but foreigners have been banned from selling.
The other element impacting the marketplace is inflation, which has intensified because of the war. Global bond market yields have been rising sharply recently, with U.S. Treasury yields nearing three-year highs. The U.S. 2-year and 10-year yield curve is very close to inverting, which would begin to suggest a U.S. economic recession.
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The key outside markets see Nymex crude oil prices near steady and trading around $115.00 a barrel. The U.S. dollar index is firmer today. The benchmark U.S. 10-year Treasury note is presently yielding 2.37%.
U.S. economic data due for release Thursday includes the weekly jobless claims report, durable goods orders, the U.S. flash manufacturing and services PMIs, and the Kansas City Fed manufacturing survey.
Technically, the April gold futures bulls have the overall near-term technical advantage. However, a bear flag pattern has formed on the daily bar chart. Bulls’ next upside price objective is to produce a close in April futures above major resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,850.00. First resistance is seen at $1,956.90 and then at $1,976.50. First support is seen at $1,925.00 and then at this week’s low of $1,909.80. Wyckoff's Market Rating: 6.5
May silver futures bulls have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $26.50 an ounce. The next downside price objective for the bears is closing prices below solid support at $24.00. First resistance is seen at this week’s high of $25.59 and then at $25.75. Next support is seen at $25.00 and then at this week’s low of $24.695. Wyckoff's Market Rating: 6.5.