Gold weaker amid bearish outside markets

(Kitco News) - Gold prices are modestly lower and silver slightly firmer in midday U.S. trading Tuesday. A higher U.S. dollar index, slightly lower crude oil prices and rising U.S. Treasury yields on this day are bearish outside market forces working against the precious metals markets bulls. April gold was last down $8.20 at $1,841.90 and March silver was up $0.14 at $21.855.

Global stock markets were mostly lower overnight. U.S. stock indexes are solidly lower at midday. 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. Apparently the precious metals traders are more worried about consumer and commercial demand prospects for metals as the world’s two largest economies square off more and more—and that is more than offsetting the potentially bullish safe-haven demand prospects for gold and silver amid the geopolitical ramifications of the matter.

The key outside markets see the U.S. dollar index higher. Nymex crude oil futures prices are slightly weaker and trading around $76.25 a barrel. The yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.916%.

Technically, April gold futures prices last Friday hit a six-week low. Bears have the slight overall near-term technical advantage. A fledgling downtrend is in place on the daily chart. Bulls’ next upside price objective is to produce a close 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 today’s high of $1,856.40 and then at $1,870.90. First support is seen at last week’s low of $1,827.70 and then at $1,815.00. Wyckoff's Market Rating: 4.5

March silver futures prices Friday hit a 2.5-month low. The silver bears have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $23.00. The next downside price objective for the bears is closing prices below solid support at $21.00. First resistance is seen at last week’s high of $22.085 and then at $22.31. Next support is seen at today’s low of $21.555 and then at last week’s low of $21.155. Wyckoff's Market Rating: 4.0.

March N.Y. copper closed up 1,105 points at 421.95 cents today. Prices closed nearer the session high. The copper bulls have the firm overall near-term technical advantage and gained more power today. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the January high of 435.50 cents. The next downside price objective for the bears is closing prices below solid technical support at the February low of 397.85 cents. First resistance is seen at today’s high of 423.70 cents and then at 430.00 cents. First support is seen at 415.00 cents and then at 410.00 cents. Wyckoff's Market Rating: 7.5.

By Jim Wyckoff

For Kitco News

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jwyckoff@kitco.com

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