(Kitco News) - Gold prices are posting decent gains in midday U.S. trading Tuesday, while silver prices are lower. The yellow metal is getting a lift due to China dropping key interest rates for mortgages in an effort to jumpstart its troubled housing/property sector. That could translate into better demand for metals, down the road, from the world’s second-largest economy. Also, a weaker U.S. dollar index and a dip in U.S. Treasury yields to start the U.S. trading week are helping out the gold market bulls. April gold was last up $14.30 at $2,038.20. March silver was last down $0.38 at $23.095.
Asian and European stock markets were mixed to lower in overnight trading. U.S. stock index futures are lower at midday. It will be a busy week for U.S. corporate earnings reports.
Traders are also looking forward to Wednesday afternoon’s release of the minutes from the last FOMC meeting of the Federal Reserve. Recent warmer U.S. inflation reports have the marketplace thinking the Fed will hold off on lower interest rates until the second half of the year, if even then.
The other key outside market today sees Nymex crude oil prices a bit weaker and trading around $79.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching around 4.27%.
Technically, April gold futures saw more short covering and bargain hunting featured today. The bears still have the slight overall near-term technical advantage. Prices are in a 2.5-month-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the February high of $2,083.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,975.10. First resistance is seen at today’s high of $2,042.70 and then at $2,050.00. First support is seen at today’s low of $2,023.90 and then at last Friday’s low of $2,006.60. Wyckoff's Market Rating: 4.5.
March silver futures bears still have the slight overall near-term technical advantage. However, a nine-week-old downtrend on the daily bar chart has been negated to suggest a market bottom is in place. Silver bulls' next upside price objective is closing prices above solid technical resistance at $24.50. The next downside price objective for the bears is closing prices below solid support at the February low of $21.975. First resistance is seen at last week’s high of $23.56 and then at $24.00. Next support is seen at last Friday’s low of $22.84 and then at $22.50. Wyckoff's Market Rating: 4.5.
March N.Y. copper closed up 230 points at 386.15 cents today. Prices closed near the session high today and hit a two-week high. The copper bulls and bears are back on a level overall near-term technical playing
field but the bulls have momentum now. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the January high of 394.70 cents. The next downside price objective for the bears is closing prices below solid technical support at the February low of 365.50 cents. First resistance is seen at 390.00 cents and then at 394.70 cents. First support is seen at today’s low of 380.00 cents and then at 375.00 cents. Wyckoff's Market Rating: 5.0.
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