(Kitco News) - Gold prices are posting modest gains in midday U.S. trading today and silver is also higher, as some safe-haven demand has returned to the two precious metals. After Monday’s hopes for a de-escalation in the Middle East war, today finds the general marketplace reckoning such is not occurring. A higher U.S. dollar index today, rising bond yields and worries about global inflation are limiting the upside in the metals markets. April gold was last up $21.30 at $4,428.20. May silver prices were up $1.165 at $70.46.
The key outside markets today see Nymex WTI crude oil prices higher and trading around $91.50 a barrel. The U.S. dollar index is higher today. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.4 percent.
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 $4,750.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at this week’s low of $4,100.00. First resistance is seen at $4,500.00 and then at this week’s high of $4,537.10. First support is seen at today’s low of $4,306.30 and then at $4,250.00. Wyckoff's Market Rating: 3.5.
May silver futures bulls see their next upside price objective is closing prices above solid technical resistance at $80.00. The next downside price objective for the bears is closing prices below solid support at $60.00. First resistance is seen at this week’s high of $71.03 and then at $72.50. Next support is seen at today’s low of $66.115 and then at $65.00. Wyckoff's Market Rating: 3.5.
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