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Price gains for gold as U.S. dollar index solidly down

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(Kitco News) - Gold prices are higher and silver is slightly up in early U.S. trading Wednesday. Sharp losses in the U.S. dollar index at midweek are supporting buying interest in the metals markets. Short covering from the shorter-term futures traders is featured in gold and silver. April gold was last up $7.80 at $1,844.30 and March silver was up $0.044 at $20.995.

Global stock markets were mixed overnight. U.S. stock indexes are pointed toward slightly firmer openings when the New York day session begins. Risk appetite is not keen to start the new trading month, but neither is risk aversion. An underlying current in the marketplace recently has been notions China’s economic growth will surge this year. A Wall Street Journal article this morning has the headline: “China’s economy seen emerging from zero-Covid shadow.” However, the deteriorating political relations between the U.S. and China have pushed the world’s two largest economies very close to a cold war that could at least partially offset the benefits to the global marketplace of a stronger China economy.

The key outside markets this morning see the U.S. dollar index solidly lower. Nymex crude oil futures prices are lower and trading around $76.50 a barrel. The yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.92%.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the U.S. manufacturing purchasing managers index (PMI), the global manufacturing PMI, the ISM report on business manufacturing, construction spending, domestic auto industry sales and the weekly DOE liquid energy stocks report.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bears have the slight overall near-term technical advantage. Prices are in a downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at $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 $1.850.00 and then at last week’s high of $1,856.40. First support is seen at the overnight low of $1,829.60 and then at $1,820.00. Wyckoff's Market Rating: 4.5.

Live 24 hours silver chart [ Kitco Inc. ]

The silver bears have the overall near-term technical advantage. Prices are in a steep downtrend on the daily bar chart. Silver bulls' next upside price objective is closing March futures prices above solid technical resistance at $22.00. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at $21.25 and then at $21.395. Next support is seen at the overnight low of $20.88 and then at this week’s low of $20.475. Wyckoff's Market Rating: 4.0.

Gold price sees worst month since mid-2021 on Fed fears

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.