Gold price near steady, hits 9-week low
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(Kitco News) - Gold prices are hovering around unchanged in early U.S. trading Monday after scoring a nine-week low in overnight dealings. Silver prices are weaker and hit a nearly four-month low today. Technical selling is featured in both metals as their near-term chart postures favor the bears. April gold was last up $0.90 at $1,818.00 and March silver was down $0.20 at $20.60.
Global stock markets were mixed overnight, with Asian shares mostly lower and European shares mostly higher. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. The stock index bulls are still jittery after last week, which saw the worst performance of the year for the U.S. stock indexes. Worries about the Federal Reserve keeping U.S. interest rates higher for longer have left traders and investors with less risk appetite. The Wall Street Journal today reported, “Fear is creeping back into the stock market. To protect against a potential downturn, traders are scooping up hedges at the fastest clip since the onset of the Covid-19 pandemic.” Traders are betting the CBOE’s daily volatility index (VIX) will rise in the coming weeks. To do that hedging, traders are buying call options on the VIX, said the WSJ.
The key outside markets this morning see the U.S. dollar index weaker. Nymex crude oil futures prices are slightly lower and trading around $76.75 a barrel. The yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.955%.
U.S. economic data due for release Monday includes durable goods orders, pending home sales and the Texas manufacturing outlook survey.
Technically, the gold futures bears have the 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 Thursday’s high of $1.841.20 and then at week’s high of $1,856.40. First support is seen at $1,815.00 and then at $1,800.00. Wyckoff's Market Rating: 4.0.
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 $21.395 and then at Thursday’s high of $21.67. Next support is seen at $21.00 and then at $20.79. Wyckoff's Market Rating: 4.0.