Gold, silver fall amid rise in USDX, U.S. bond yields

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(Kitco News) - Gold and silver prices are weaker at midday Thursday, as rising U.S. Treasury yields and an appreciating U.S. dollar on the foreign exchange market are bearish outside market forces working against the metals market bulls today. April gold was last down $6.20 at $1,839.10 and May silver was down $0.245 at $20.85.

Global stock markets were mixed overnight. U.S. stock indexes are mixed at midday. A feature in the marketplace recently has been rising U.S. Treasury yields. The yield on the benchmark U.S. 10-year Treasury note is presently fetching 4.081%. The yield is the highest since last November. Traders and investors worried about a still-hawkish Federal Reserve keeping interest rates higher for longer in order to successfully tamp down problematic price inflation. However, that means the Fed clamping down on U.S. economic growth to squelch consumer and commercial demand.

In overnight news, the Euro zone February consumer price index came in at up 8.5%, year-on-year, compared to up 8.6% in January and a forecast for up 8.2% in the February report. It’s apparent the European Central Bank still has more work to do to defeat high inflation in the Euro zone.

The key outside markets this morning see the U.S. dollar index solidly higher. Nymex crude oil futures prices are near steady and trading around $77.75 a barrel. Oil prices have rallied recently on hopes for better energy demand from China, the world’s second-largest economy, as that nation has abandoned its Covid restrictions.

Technically, April gold futures bears have the slight overall near-term technical advantage. A price downtrend is in place on the daily chart, but now just barely. Bulls’ next upside price objective is to produce a close above solid resistance at $1,881.40. 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 $1,852.50 and then at last week’s high of $1,856.40. First support is seen at Wednesday’s low of $1,829.60 and then at $1,820.00. Wyckoff's Market Rating: 4.5.

May silver futures bears have the overall near-term technical advantage. Prices are in a steep downtrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $22.25. The next downside price objective for the bears is closing prices below solid support at $20.00. First resistance is seen at this week’s high of $21.285 and then at $21.52. Next support is seen at this week’s low of $20.505 and then at $20.25. Wyckoff's Market Rating: 3.5.

March N.Y. copper closed down 950 points at 407.30 cents today. Prices closed nearer the session low today. The copper bulls have the firm overall near-term technical advantage and have momentum. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the January high of 435.50 cents. The next downside price objective for the bears is closing prices below solid technical support at the February low of 393.45 cents. First resistance is seen at this week’s high of 418.10 cents and then at the February high of 423.70 cents. First support is seen at today’s low of 406.00 cents and then at 400.00 cents. Wyckoff's Market Rating: 6.0.