Gold sees consolidative trade as Powell does not surprise

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(Kitco News) - Gold and silver prices are near steady and silver prices a bit weaker in midday U.S. trading Tuesday, on normal corrective pullbacks and consolidation following recent gains. A firmer U.S. dollar index and an uptick in U.S. Treasury yields were bearish outside market forces for the metals on this day. February gold was last down $0.30 at $1,877.60 and March silver was down $0.151 at $23.72.

Remarks this morning from Federal Reserve Chairman Jerome Powell, speaking at a Riksbank conference in Sweden, saw no surprises to the marketplace. Gold did briefly pop up mildly as Powell''s comments did not seem more hawkish than his earlier speeches. Still, the marketplace is reading Fed officials'' remarks as still leaning overall hawkish on U.S. monetary policy, including a "higher for longer" interest rate scenario. This took steam out of what were just slightly better risk-on attitudes this week.

Global stock markets were mixed overnight. U.S. stock indexes are slightly higher at midday. Risk appetite in the general marketplace has improved a bit this week as China has been opening up its businesses and its borders in a pivot from its strict Covid restrictions.

The key outside markets today see the U.S. dollar index higher on a corrective bounce after strong losses Monday that pushed the index to a multi-month low. Nymex crude oil futures prices are up and trading around $75.50 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching around 3.6%. 

Technically, February gold futures prices hit a seven-month high Monday. Bulls have the solid overall near-term technical advantage. A two-month-old uptrend is in place on the daily bar chart. Bulls'' next upside price objective is to produce a close above solid resistance at the $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at this week''s high of $1,886.40 and then at $1,900.00. First support is seen at this week''s low of $1,869.30 and then at $1,850.00. Wyckoff's Market Rating: 8.0

March silver futures bulls have the firm overall near-term technical advantage. Prices are still in a four-month-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at $24.00 and then at this week''s high of $24.285. Next support is seen at $23.55 and then at the January low of $23.26. Wyckoff's Market Rating: 7.0.

March N.Y. copper closed up 490 points at 407.60 cents today. Prices closed near the session high and hit another 6.5-month high today. The copper bulls have the firm overall near-term technical advantage. A three-month-old uptrend on the daily bar chart has been restarted. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 425.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 380.00 cents. First resistance is seen at 410.00 cents and then at 415.00 cents. First support is seen at 400.00 cents and then at this week''s low of 392.35 cents. Wyckoff's Market Rating: 7.0.