(Kitco News) - Gold and silver prices are strongly lower near midday Tuesday, with weak long liquidation from the shorter-term futures traders featured. A rally in the U.S. dollar index and lower crude oil prices today were also bearish outside-market elements for the precious metals to start the U.S.-holiday-shortened trading week. April gold was last down $141.50 at $4,904.10. March silver prices were down $4.174 at $73.66.
Iran and the U.S. met for a second round of nuclear talks in Geneva, Switzerland today as they seek to avoid renewed conflict in the Middle East following last year’s U.S. attacks on the Islamic Republic. This was also a negative for the safe-haven metals—although any deal between the U.S. and Iran is likely a long way off.
The key outside markets today see the U.S. dollar index higher, with crude oil prices weaker and trading around $62.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.03 percent and at a 2.5-month low.
Note: The gold market operates through two primary pricing mechanisms. The first is the spot market, which quotes prices for on-the-spot purchase and immediate delivery. The second is the futures market, which sets prices for delivery at a future date. Due to year-end positioning market liquidity, the December gold futures contract is currently the most actively traded on the CME.
Technically, April gold futures bulls’ next upside price objective is to produce a close above solid resistance at $5,250.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at last week’s low of $4,670.00. First resistance is seen at $5,000.00 and then at today’s high of $5,074.40. First support is seen at $4,900.00 and then at $4,800.00. Wyckoff's Market Rating: 6.0.
March silver futures bulls see the next upside price objective is closing prices above solid technical resistance at last week’s high of $86.12. The next downside price objective for the bears is closing prices below solid support at the February low of $63.90. First resistance is seen at today’s high of $78.42 and then at $80.00. Next support is seen at today’s low of $71.815 and then at $70.00. Wyckoff's Market Rating: 4.5.
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