Gold and silver with increased bond yields

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(Kitco News) – Gold and silver futures prices are solidly lower in US midday trading on Wednesday. Gold hit a nine-month low earlier today, but is now trading near the middle of the day, with some bargain hunters to buy the big drop. A spike in oil prices today also helped to bring the gold and silver markets above their daily lows. However, rising yields on U.S. government bonds, which are close to last week’s 12-month high, and a slight recovery in the midweek US dollar index are negative external forces working against the metal markets. precious. Futures traders based on short-term charts are also stacking gold and silver on the sell side at the moment, due to the deterioration of their short-term technical stances. April gold futures fell $ 17.20 to $ 1,716.50 and May Comex silver fell $ 0.509 to $ 26.375 an ounce.

Traders and investors will continue to watch out for government bond yields, which have generally been rising recently and which sometimes make stock markets unstable. The US Treasury’s 10-year note is currently trading around 1.486% for its yield. Many veteran market analysts believe that US Treasury yields will continue to rise in the coming months.

A large spike in Bitcoin prices today, to support above $ 50,000, is also likely to reduce the interest of any gold and silver buyer.

The US data point of the day was the ADP’s national employment report for February, which reached 117,000, which was a negative error from the expected increase of 225,000 jobs, and compares to a gain of 174,000 in January. This report is a precursor to the US Department of Labor’s Friday morning employment status report – arguably the most important economic report of the month in the United States.

Global stock markets rose mainly overnight. US stock indices are mixed at noon. Market attitudes are optimistic in the middle of the week, after President Biden said on 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 approaching to launch its newest $ 1.9 trillion pandemic assistance package. “We can see the light at the end of the pandemic tunnel,” said a market analyst. The safe-haven metals markets are not receiving support from the notions above.

The main “foreign markets” today see Nymex oil futures prices solidly higher and trading at around $ 62.00 a barrel. There is an OPEC meeting on Thursday that the market will monitor closely. It could be that with the price of oil above $ 60 a barrel, the cartel opens the oil taps a little more, after containing production in recent months to sustain prices. The US dollar index is firmer at noon today.

Technically, gold futures prices in April hit a nine-month low earlier today. Gold bears still have a solid general short-term technical advantage. Prices are on a two-month downtrend on the daily bar chart. The Bulls’ next bullish price target is to produce a close above the solid resistance at this week’s high of $ 1,757.40. The bears’ next short-term low price objective is to push future prices below solid technical support to $ 1,650.00. The first resistance is seen at $ 1,725.00 and then at today’s high at $ 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

May silver futures bulls have lost their slight overall short-term technical advantage as the five-week price uptrend on the daily chart has been negated. The next bullish price target for silver bulls is to close prices above solid technical resistance at $ 28.47 an ounce. The bears’ next downside price target is closing prices below solid support at $ 25.00. The first resistance is 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’s market rating: 5.0.

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