Gold, silver hit by rising bond yields

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(Kitco News) – Gold and silver futures prices are solidly lower in midday US trading on Wednesday. Gold hit a nine-month low earlier today but is now trading near the mid-range for the day as some bargain hunters stepped in to buy the big drop. A rebound in crude oil prices today also helped the gold and silver markets rise from their daily lows. However, rising US government bond yields, which are close to last week’s 12-month high, and a slight rebound in the US dollar index midweek are negative external forces. acting against precious metal markets. Short-term chart-based futures traders are also betting on the sell side of gold and silver today, due to deterioration in their short-term technical positions. April gold futures were down $ 17.20 to $ 1,716.50 for the last time and May silver on Comex was down $ 0.509 to $ 26.375 an ounce.

Traders and investors will continue to keep an eye out for government bond yields, which have generally risen recently and have sometimes rocked equity markets. The 10-year US Treasury bond is currently trading at around 1.486% for its yield. Many veteran market watchers believe that US Treasury yields will continue to rise in the coming months.

A big rally in Bitcoin prices today, to retreat above $ 50,000, is also likely to reduce the interest of potential gold and silver buyers.

The American data for the day was ADP’s national employment report for February, which hit 117,000, which was a loss from the expected rise of 225,000 jobs, and compares with a rise of 174,000 in January. This report is a precursor to the US Department of Labor’s Friday morning employment situation report, arguably the most important US economic report of the month.

Global stock markets mostly rose overnight. US stock indices are mixed at noon. Market attitudes are optimistic mid-week after President Biden said Tuesday that all Americans who want a Covid vaccine should be able to get it by the end of May. In addition, the US government is getting closer to launching its new pandemic assistance package amounting to $ 1.9 trillion. “We can see the light at the end of the pandemic tunnel,” said one market analyst. Safe-haven metal markets are not supported by the above notions.

Major “outside markets” today see Nymex crude futures prices solidly higher, trading around $ 62.00 a barrel. There is an OPEC meeting on Thursday that the market will follow closely. It could be that with oil prices above $ 60 a barrel, the cartel opens its oil taps a bit more, after slowing down production in recent months to prop up prices. The US dollar index is firmer today at noon.

Technically, April gold futures prices hit a nine-month low today. The golden bears still have the strong overall short-term technical advantage. Prices are in a two-month downtrend on the daily bar chart. The Bulls’ next upside price objective is to produce a close above solid resistance at this week’s high of $ 1,757.40. The next short-term downside price objective for the bears is pushing futures prices below solid technical support at $ 1,650.00. Resistance is seen first at $ 1,725.00 and then at today’s high of $ 1,739.10. The first support is seen at today’s low of $ 1,699.40 and then at $ 1,680.00. Wyckoff Market Rating: 2.0

24 hour live silver chart [ Kitco Inc. ]

The bulls in May silver futures have lost their slight overall short-term technical advantage as a five-week uptrend in prices on the daily chart has been reversed. The next upside price objective for silver bulls is closing prices above solid technical resistance at $ 28.47 an ounce. The next downside price objective for the bears is the closing prices below solid support at $ 25.00. Resistance is first seen at today’s high of $ 29,915 and then at this week’s high of $ 27,175. The next support is seen at $ 26.00 and then at this week’s low of $ 25.82. Wyckoff Market Rating: 5.0.

May NY copper closed down 800 points at 414.25 cents today. Prices closed near the low of the session today and saw routine profit taking. Copper bulls still have the strong overall short-term technical advantage. Prices are in a 12-month uptrend on the daily bar chart. The next upside price objective for copper bulls is pushing closing prices above solid technical resistance at 440.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 390.00 cents. The first resistance is seen at this week’s high of 422.75 cents and then 425.00 cents. The first support is seen at 410.00 cents and then at this week’s low of 404.15 cents. Wyckoff Market Rating: 8.0.

Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes. It is not a request to make any exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept responsibility for loss and / or damage arising from the use of this publication.

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