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Gold, silver see corrective price pullbacks after recent gains

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(Kitco News) - Gold and silver prices are weaker in early U.S. trading Friday, on routine downside price corrections following recent good gains. Overall, the bulls have had a good trading week. Don’t be surprised to see some safe-haven and bargain buying surface as the session progresses and heading into the weekend. April gold futures were last down $10.70 at $1,951.60 and May Comex silver was last down $0.09 at $25.835 an ounce.

Global stocks markets were mixed overnight. The U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. There have been no major developments on the Russia-Ukraine war front, from a markets perspective. That has somewhat lessened trader and investor risk aversion, but by no means can risk appetite in the marketplace be termed robust at present. There may be some keener risk aversion creep into markets on Friday, heading into the weekend.

Reports say President Biden and the European Commission president will announce a pact to boost Europe’s supply of liquefied natural gas by the end of the year as the EU tries to curb its reliance on Russian energy. The agreement follows Biden’s meetings with NATO, the Group of Seven and EU leaders to ramp up pressure on Putin. Biden Thursday called for Russia’s removal from the G-20 group of major economies.

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Many market watchers are wondering what Russian President Putin will do next. His blunders, including the failed attempt at a swift victory in Ukraine and his vulnerable military that appears to be aging and under-funded, are front and center on the world stage. So is the slaughter of innocent Ukrainian citizens, young and old. Most believe a humiliated Putin is now more dangerous than ever. Indeed, this crisis is far from its end and may get worse before it gets better. However, the price spikes seen in gold and crude oil a few weeks ago that have not been retested do suggest that from a markets perspective, trader and investor anxiety a few weeks ago hit a peak as worst-case scenarios were quickly factored into markets. That’s an important assumption for traders and investors to digest.

The key outside markets see Nymex crude oil prices weaker and trading around $111.50 a barrel. The U.S. dollar index is weaker early today. The benchmark U.S. 10-year Treasury note is presently yielding 2.37%. Higher bond yields are a negative for the metals, which provide no yield.  

U.S. economic data due for release Friday includes pending home sales and the University of Michigan consumer sentiment survey.

Live 24 hours gold chart [Kitco Inc.]

Technically, the April gold futures bulls have the firm overall near-term technical advantage and are having a good week. 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 the March low of $1,895.20. First resistance is seen at this week’s high of $1,967.20 and then at $1,976.50. First support is seen at Thursday’s low of $1,937.40 and then at $1,925.00. Wyckoff's Market Rating: 7.0

Live 24 hours silver chart [ Kitco Inc. ]

May silver futures bulls have the firm 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 $26.00 and then at this week’s high of $26.16. Next support is seen at $25.50 and then at Thursday’s low of $25.17. 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.