Gold, silver hit 12-mo. highs then see mild profit taking
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(Kitco News) - Gold and silver prices are near steady in midday U.S. trading Wednesday, on a bit of profit-taking pressure and chart consolidation after hitting 12-month highs overnight. Both metals are in strong technical positions to suggest still more upside in the near term. April gold was last up $1.10 at $2,023.20 and May silver was up $0.01 at $25.11.
A standout feature in the marketplace this week is gold prices pushing above $2,000.00 an ounce and now closing in on the record high of $2,078.80, scored in March of 2022. A weakening U.S. dollar index and a surge in crude oil prices this week have helped to rally the yellow metal. Safe-haven demand amid the banking turmoil in the U.S. and Europe are also boosting gold and silver. JP Morgan chief Jamie Dimon said in a report issued Tuesday that the banking crisis is not over.
Global stock markets were mixed to weaker overnight. U.S. stock indexes are mixed to weaker at midday. Trader and investor risk appetite has been dented at mid-week after some downbeat U.S. economic data released Tuesday, namely a JOLTS report that showed a decline in job openings and a weak factory orders report. Today’s U.S. ADP national employment report also came in weaker than market expectations.
In overnight news, New Zealand’s central bank surprised the marketplace by raising its main interest rate by 0.5%.
The U.S. data point of the week is Friday’s U.S. employment situation report for March from the Labor Department. The key non-farm payrolls number is seen coming in at up 238,000, compared to a rise of 311,000 in the February report. The U.S. markets will have to wait until Monday to react to the data, as they are closed on Friday for the Easter holiday.
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The key outside markets today see the U.S. dollar index slightly up after hitting a two-month low Tuesday. Nymex crude oil prices are slightly down and trading around $80.50 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.281% and is dipping this week.
Technically, April gold futures prices hit a 12-month high early on 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 this week’s low of $1,950.00. First resistance is seen at today’s high of $2,033.80 and then at $2,050.00. First support is seen at $2,000.00 and then at Tuesday’s low of $1,979.00. Wyckoff's Market Rating: 8.5
May silver futures prices hit a 12-month high early on 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 $25.295 and then at $25.50. Next support is seen at today’s low of $24.785 and then at $24.50. Wyckoff's Market Rating: 8.0.May N.Y. copper closed up 165 points at 398.75 cents today. Prices closed near the session high and hit a two-week low early on today. The copper bulls have the slight overall near-term technical advantage but have faded recently. 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 Tuesday’s high of 407.15 cents. First support is seen at today’s low of 392.60 cents and then at 390.00 cents. Wyckoff's Market Rating: 5.5.