Gold, silver down as risk appetite slightly up
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(Kitco News) - Gold prices are solidly lower and silver modestly down in midday U.S. trading Monday. Both metals’ prices are up from their daily lows, however. Less risk aversion in the marketplace early this week is prompting profit taking and weak long liquidation from the futures traders. April gold was last down $24.80 at $1,959.00 and May silver was down $0.189 at $23.15.
Global stock markets were mostly higher overnight. U.S. stock indexes are mixed at midday. Risk appetite is slightly keener Monday and that’s a negative for the safe-haven metals. The U.S. and European banking systems appear to have stabilized, at least for the moment. First Citizens Bancshares has agreed to buy pieces of Silicon Valley Bank. Meantime, Deutsche Bank shares are firmer today amid easing fears for that bank’s health.
Geopolitics is moving closer to the front burner of the marketplace as Russia over the weekend threatened to station tactical nuclear weapons in Belarus. North Korea has test-fired more ballistic missiles and the U.S. has retaliated with air strikes in Syria after an Iranian-backed drone attack killed a U.S. citizen and injured U.S. military personnel.
It’s a busy week for U.S. economic data, including Friday’s much-anticipated personal consumption and expenditures data that will provide fresh clues on whether the U.S. economy is headed toward recession.
|Banking uncertainty spurs gold gains, will trade around $2,000 through 2023 - State Street's George Milling Stanley|
The key outside markets today see the U.S. dollar index weaker. Nymex crude oil futures prices are up and trading around $71.25 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching around 3.5%.
Technically, April gold futures bulls still have the firm overall near-term technical advantage. Prices are still in an uptrend on the daily bar chart, but now just barely. Bulls’ next upside price objective is to produce a close above solid resistance at the March high of $2,014.90. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at $1,975.00 and then at today’s high of $1,984.00. First support is seen at today’s low of $1,945.00 and then at last week’s low of $1,936.50. Wyckoff's Market Rating: 7.4
May silver futures bulls have the firm overall near-term technical advantage. Prices are in a steep uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at today’s high of $23.485 and then at last week’s high of $23.705. Next support is seen at $23.00 and then at $22.50. Wyckoff's Market Rating: 6.5.
May N.Y. copper closed down 35 points at 407.15 cents today. Prices closed nearer the session high today. The copper bulls have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the January high of 435.90 cents. The next downside price objective for the bears is closing prices below solid technical support at the March low of 382.20 cents. First resistance is seen at 410.00 cents and then at last week’s high of 414.85 cents. First support is seen at today’s low of 402.35 cents and then at 400.00 cents. Wyckoff's Market Rating: 6.0.