Gold, silver rally strongly to 12-mo. highs after weak U.S. data
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(Kitco News) - Gold and silver prices are sharply higher and hit 12-month highs near midday Tuesday. Some weak U.S. economic data that pressured the U.S. dollar index and sent U.S. Treasury yields down boosted gold and silver prices. Bullish charts are also fueling the technically related precious metals bulls. Gold prices are now within striking distance of the all-time high of $2,078.80, basis nearby Comex futures, scored in March of 2022. April gold was last up $37.60 at $2,021.60 and May silver was up $0.909 at $24.93.
The gold and silver markets rallied strongly in the aftermath of downbeat U.S. economic data released Tuesday morning. The Labor Department reported job openings fell in February to the lowest levels in nearly two years—a sign employers demand for workers has eased. Meantime, U.S. factory orders in March were down 0.7%. The economic data falls into the camp of the U.S. monetary policy doves who want to see lower interest rates from the Federal Reserve, or at least a pause in the recent string of rate hikes. That pressured the U.S. dollar index and dropped U.S. Treasury yields.
Global stock markets were mixed to higher overnight. U.S. stock indexes are lower near midday. U.S. stock index bulls are still enjoying near-term price uptrends on the daily bar charts.
In overnight news, Australia’s central bank kept its monetary policy steady after its regular meeting. The bank said the pause from tightening gives it time to assess the outlook amid uncertainty, but added further tightening of monetary policy may be needed.
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Meantime, the Eurozone February producer price index was reported up 13.6%, year-on-year, which was slightly below market expectations.
The key outside markets today see the U.S. dollar index solidly lower and hitting a two-month low. Nymex crude oil prices are slightly lower and trading around $80.25 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.352%.
Technically, April gold futures prices hit a 12-month high today. Bulls have the strong overall near-term technical advantage. Prices are in an uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the all-time high of $2,078.80, scored in March of 2022. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,945.00. First resistance is seen at $2,035.00 and then at $2,070.00. First support is seen at $2,000.00 and then at today’s low of $1,979.00. Wyckoff's Market Rating: 9.0
May silver futures prices hit a 12-month high today. The silver bulls have the strong 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 $27.50. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at today’s high of $25.12 and then at $25.50. Next support is seen at $24.50 and then at $24.00. Wyckoff's Market Rating: 8.5.
May N.Y. copper closed down 805 points at 396.50 cents today. Prices closed near the session low and hit a two-week low today. The copper bulls have the slight overall near-term technical advantage but are fading this week. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the March high of 417.45 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 400.00 cents and then at today’s high of 407.15 cents. First support is seen at 395.00 cents and then at 390.00 cents. Wyckoff's Market Rating: 5.5.