(Kitco News) - Gold and silver prices are strongly lower in midday U.S. trading Tuesday, on heavy profit taking and weak long liquidation from the shorter-term futures traders after recent gains that saw the gold market hit record highs on Monday. No serious chart damage has occurred in the gold market yet, but the bulls need to stabilize the market very soon in order to avoid chart damage. Silver has seen chart damage inflicted, which is also an early bearish clue for gold. (I explain why in this week’s Front Burner report. If you don’t get that report, email me at jim@jimwyckoff.com and I’ll forward it to you.) April gold was down $53.40 at $2,910.60. March silver prices were last down $0.853 at $31.74.
U.S. stock indexes are lower near midday. Risk aversion is keener today after U.S. President Trump signaled tariffs on Mexican and Canadian imports will go into effect. The Trump administration is also pressing its allies to tighten restrictions on China’s computer chip industry. However, today’s risk aversion is not benefiting the precious metals market bulls.
The key outside markets today see the U.S. dollar index modestly down. Nymex crude oil futures prices are lower and trading around $69.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.302%.
Technically, April gold futures bulls still have the solid overall near-term technical advantage. Prices are still trending up on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at this week’s record high of $2,974.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,845.00. First resistance is seen at $2,925.00 and then at $2,950.00. First support is seen at $2,887.60 and then at $2,875.00. Wyckoff's Market Rating: 8.0.
March silver futures bulls lost their slight the overall near-term technical advantage as a price uptrend on the daily bar chart has been negated. Silver bulls' next upside price objective is closing prices above solid technical resistance at $33.00. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen at $32.00 and then at $32.50. Next support is seen at today’s low of $31.60 and then at $31.00. Wyckoff's Market Rating: 5.0.
(Hey! My “Markets Front Burner” weekly email report is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. Plus, I’ll throw in an educational feature to move you up the ladder of trading/investing success. And it’s free! Sign up here; it’s real easy. https://www.kitco.com/services
