AM-PM Roundup
Gold price weaker as U.S. dollar index, bond yields rise
(Kitco News) - Gold prices are a bit lower and silver a bit higher in early U.S. trading Tuesday. A firmer U.S. dollar index and rising U.S. Treasury yields on this day are bearish outside market elements for the precious metals markets. Some heightened risk aversion in the marketplace to start the U.S. trading week may prompt some better safe-haven for gold as the U.S. day session progresses. April gold was last down $6.40 at $1,843.80 and March silver was up $0.09 at $21.81.
Global stock markets were mostly lower overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins. Trader and investor risk aversion is elevated to start the U.S. trading week, following President Biden’s surprise visit to the Ukraine and his promise to provide $500 million more in aid to the war-torn nation. This comes at the same time U.S.-China relations continue to deteriorate.
In overnight news, the Euro zone got some upbeat economic news as its February composite purchasing managers index came in at 52.3, which was well above the consensus forecast of 50.5 and compares to the January reading of 50.3. A number above 50.0 suggests growth in the sector.
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Rising geopolitical uncertainty could create a war-time economy that drives gold to $2,000 - BCA |
The key outside markets this morning see the U.S. dollar index modestly higher. Nymex crude oil futures prices are higher and trading around $77.25 a barrel. The yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.877%.
U.S. economic data due for release Tuesday includes the U.S. flash and services purchasing managers’ indexes and existing home sales.
![Live 24 hours gold chart [Kitco Inc.]](/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, the gold futures bears have the slight overall near-term technical advantage. Prices are in a fledgling downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at last week’s high of $1,881.60. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at the overnight high of $1,856.40 and then at $1,870.90. First support is seen at the overnight low of $1,839.00 and then at the February low of $1,827.70. Wyckoff's Market Rating: 4.5
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
The silver bears have the overall near-term technical advantage. Prices are in a downtrend on the daily bar chart. Silver bulls' next upside price objective is closing March futures prices above solid technical resistance at $22.635. The next downside price objective for the bears is closing prices below solid support at $20.00. First resistance is seen at the overnight high of $21.905 and then at $22.00. Next support is seen at $21.50 and then at the February low of $21.155. Wyckoff's Market Rating: 4.0.
