Gold, silver see routine profit taking, corrective pullbacks
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(Kitco News) - Gold and silver prices are weaker in midday early U.S. trading Thursday, on profit-taking and corrective pullbacks after both metals scored five-week highs Wednesday. Veteran market watchers would deem the pauses as being actually healthy for the fledling price uptrends in gold and silver to continue. April gold was last down $9.20 at $1,922.00 and May silver was down $0.197 at $21.685.
Global stock markets were mixed overnight. U.S. stock indexes are higher at midday. The marketplace has been at least temporarily assuaged by news the Swiss central bank has thrown its financial support behind the troubled Credit Suisse bank. Credit Suisse's CEO said his bank will continue its "strategic transformation to deliver value to our clients." Credit Suisse's stock price jumped 20% Thursday. However, many long-time market watchers are "waiting for the next shoe to drop" in the banking crisis. Rumblings in the marketplace say Republic Bank might be the next domino.
The European Central Bank met Thursday and raised its main interest rate by 50 basis points. The marketplace took the ECB move in stride, as least initially. The Federal Reserve's FOMC meets next week and there is a hot debate in the marketplace regarding whether the Fed will raise its main interest rate by 25 basis points, or stand pat amid the U.S. and European banking crises. There appear to be valid arguments for both sides, but the ECB rate hike today seems to give the Fed the green light to hike by 25 basis points.
|Don't doubt that the ECB will fight inflation - Christine Lagarde|
The key outside markets today see the U.S. dollar index a bit weaker. Nymex crude oil futures prices are slightly firmer and trading around $67.75 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.522%.
Technically, April gold futures bulls still have the solid overall near-term technical advantage. Bulls' next upside price objective is to produce a close above solid resistance at the February high of $1,975.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,850.00. First resistance is seen at this week's high of $1,942.50 and then at $1,950.00. First support is seen at $1,900.00 and then at Wednesday's low of $1,889.50. Wyckoff's Market Rating: 7.5.
May silver futures bulls have the overall near-term technical advantage. Prices are in a fledgling uptrend on the daily bar chart. 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 today's high of $22.21 and then at this week's high of $22.425. Next support is seen at $21.395 and then at $21.00. Wyckoff's Market Rating: 6.0.
May N.Y. copper closed down up 180 points at 386.10 cents today. Prices closed nearer mid-range and hit a nine-week low early on today. The copper bears have the overall near-term technical advantage. Prices are in a seven-week-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the March high of 417.25 cents. The next downside price objective for the bears is closing prices below solid technical support at 372.00 cents. First resistance is seen at today's high of 390.30 cents and then at 395.00 cents. First support is seen at today's low of 382.20 cents and then at 380.00 cents. Wyckoff's Market Rating: 4.0.