Silver bulls run out of gas quickly; gold follows lower

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(Kitco News) – Gold and silver futures prices are trading at a sharp drop in Tuesday’s US session, with silver leading the way. It seems that the attempt to tighten the silver market failed quickly. The recovery in global stock markets earlier this week is also a bearish element for safe-haven metals. April gold futures fell $ 26.10 to $ 1,837.80 and the March Comex silver fell $ 2.768 to $ 26.65 an ounce.

Silver’s huge retreat from Monday’s eight-year high of $ 30.35 in the March futures market suggests that retail traders’ efforts to produce a little pressure have quickly failed. The big jump in silver futures caught the attention of the Commodity Futures Trading Commission (CFTC), with acting chairman Rostin Behnam saying that the futures regulator is “closely monitoring” activity. Comex increased the trading margins for silver futures this week.

Global stock markets were firmer overnight. US stock indexes are highest at midday and have recovered strongly after recent declines. Traders and investors are more optimistic this week with the news that the Covid-19 pandemic, while still affecting many countries, is showing some peak signs in the U.S. and Europe as vaccines continue to be distributed to populations, but not without some serious bottlenecks. In addition, market attention is focused on a new pandemic relief package that is likely to be approved by the US Congress in the coming weeks. It also appears that the commercial saga of GameStop and “Redditor” has slowed, at least for now, with the market again focusing on corporate earnings reports and upcoming economic data that include Friday’s employment situation in the US.

The main “foreign markets” today see the US dollar index higher and hitting a seven-week high overnight. It is important to note that USDX is now experiencing an upward trend in the short term and some of the major currency futures markets are now experiencing downward price trends in the short term, while others have at least seen their upward price trends stagnating. Meanwhile, Nymex crude futures prices are solidly higher, reaching a high of more than 12 months overnight and trading at around $ 54.65 a barrel. The yield on the 10-year United States Treasury reference note is 1.11%.

Technically, the bulls and bears of April’s future gold are back on a general level in the short-term technical field amid recent hectic negotiations. The Bulls’ next bullish price target is to produce a close above the solid resistance at $ 1,900.00. The bears’ next short-term low price objective is to push future prices below solid technical support at the January low of $ 1,804.70. The first resistance is seen at $ 1,850.00 and then at today’s high of $ 1,866.30. The first support is seen at today’s low of $ 1,830.40 and then at $ 1,821.30. Wyckoff market rating: 5.0

March silver futures bulls ran out of gas after pushing prices to an eight-year high on Monday. Silver bulls still have the general short-term technical advantage. The next bull bull price target is to close prices above solid technical resistance at this week’s high of $ 30.35 an ounce. The bears’ next downside price target is closing prices below solid support at $ 25.00. The first resistance is seen at $ 27.00 and then at $ 27.77. The next support is seen at today’s low of $ 26.46 and then at $ 26.00. Wyckoff market rating: 6.5.

March copper in NY closed down 165 points to 353.05 cents today. Prices closed close to the mid-range today and closed at a four-week low. Copper bulls still have the firm general short-term technical advantage, but have declined. An upward trend in prices on the daily bar chart has been denied and prices have been falling for three weeks. The next bullish price target for copper bulls is to push and close prices above solid technical resistance at the January high of 373.40 cents. The bears’ next downside price target is closing prices below solid technical support at 340.00 cents. The first resistance is seen at this week’s high at 358.50 cents and then at 360.00 cents. The first support is seen at last week’s low at 349.10 cents and then at 345.00 cents. Wyckoff’s market rating: 7.0.