Gold sees price paused before Powell’s testimony

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(Kitco News) – Gold futures prices are being traded not far from unchanged at the start of US trades on Tuesday and are halting after good gains on Monday and ahead of what is likely to be the event in the US markets. week: Federal Reserve Chairman Jerome Powell comments to US lawmakers. Unstable US stock indexes and a weaker dollar index earlier this week, combined with rising crude oil prices, appear to have at least put one floor under the gold and silver markets. April gold futures rose $ 1.80 to $ 1,809.90 and March Comex silver fell $ 0.095 to $ 27.97 an ounce.

The market looks forward to Powell’s testimony on US monetary policy to the Senate Banking Committee on Tuesday morning. The market will be especially interested in hearing what Powell has to say about rising US Treasury yields and the prospect of rising inflation. The stock market was unstable earlier this week due in part to concerns about rising bond yields that are beginning to take investors’ money out of the stock market. Barron’s story today was entitled, “The trade in reflection is well underway. How long can investors continue to smile? ”Still, US stock indexes are not far below their recent records and the attitudes of traders and investors are still generally optimistic.

Global stock markets were mixed overnight, with Asian stocks up and Europeans down. US stock indexes point to mixed openings when the New York Day session begins.

In other evening news, the price of Bitcoin is falling earlier this week and has dropped about 15% from the record set over the weekend. If the falls in Bitcoin continue, this could put a floor under the competing asset class, the gold and silver markets.

The main “foreign markets” today see Nymex oil futures prices slightly up, reaching the highest increase in 13 months and trading at around $ 62.00 a barrel. The US dollar index is weaker and firmer earlier today, but bulls have weakened recently. The yield on the 10-year United States Treasury bill is currently at 1.37%.

US economic data due for release on Tuesday include the weekly retail sales reports from Goldman Sachs and Johnson Redbook, the monthly home price index, the S&P Core-Logic home indexes, the Richmond Fed business survey and the consumer confidence index.

Technically, February gold bears in the future have the general short-term technical advantage amid a six-week price downtrend on the daily chart. The Bulls’ next bullish price target is to produce a close on April futures above the solid resistance at $ 1,856.60. The bears’ next short-term low price objective is to push future prices below solid technical support at the February low of $ 1,759.00. The first resistance is seen at the $ 1,815.20 high overnight and then at $ 1,820.00. The first support is seen at the $ 1,802.30 night low and then at $ 1,800.00. Wyckoff market rating: 3.5

March silver futures bulls have a general short-term technical advantage. The next bull bull price target is to close prices above solid technical resistance at the February high of $ 30.35 an ounce. The bears’ next downside price target is closing prices below solid support at $ 26.00. The first resistance is seen at today’s high of $ 28.425 and then at $ 28.50. The next support is seen at this week’s low of $ 27.33 and then $ 27.00. Wyckoff market rating: 6.5.