(Kitco News) – Gold prices are solidly lower again in midday U.S. trading Monday and hit a 10-month low. Silver is trading near steady. The precious metals are pressured again early this week by rising government bond yields and an up-trending U.S. dollar index—both of which compete with the metals as a safe-haven store of value. April gold futures were down $21.80 at $1,676.70 and May Comex silver was last down $0.002 at $25.285 an ounce.
Global stock markets were mixed overnight, with Asian indexes mostly lower and European indexes mostly higher. Asian shares were pressured by more overtures by the Chinese government that suggest consumer debt and stock market speculation will be reined in. U.S. stock indexes are mixed at midday, with the tech sector again seeing selling interest. Rising government bond yields remain in the spotlight to start the trading week and remain a bearish element for stock markets. The U.S. 10-year Treasury note was trading around 1.62% today.
Tensions are rising in the Middle East after a drone attack by Iran-backed Houthi rebels on a major Saudi Arabian oil facility over the weekend. The Saudis said the attack will not impact overall Saudi oil production levels. Still, the matter deserves close monitoring as any further Saudi Arabia-Iran military conflicts could impact oil flowing out of the Persian Gulf.
In other overnight news, China reported its exports rose a whopping 60.6% in the January-February period, while imports were up 22.2%, year-on-year. Both numbers handily beat market expectations and further suggest the world’s second-largest economy has shifted into high gear. This news should be an underlying supportive element for the metals markets, as it suggests better consumer demand for metals due to China’s strengthening economy.
The key “outside markets” today see Nymex crude oil futures lower on profit taking hitting a 2.5-year high of $67.98 overnight. Prices are presently trading around $65.15 a barrel. Meantime, the U.S. dollar index is higher and hit another 3.5-month high today.
Technically, April gold futures prices hit a 10-month low today. The gold bears have the solid overall near-term technical advantage. Prices are in a two-month-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,750.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,600.00. First resistance is seen at $1,700.00 and then at today’s high of $1,712.00. First support is seen at today’s low of $1,673.30 and then at $1,660.00. Wyckoff’s Market Rating: 2.0
May silver futures bears have the overall near-term technical advantage. Prices are in a five-week-old downtrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $27.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $24.00. First resistance is seen at $25.50 and then at $26.00. Next support is seen at $25.00 and then at last week’s low of $24.845. Wyckoff’s Market Rating: 4.0.
May N.Y. copper closed up 135 points at 408.90 cents today. Prices closed near mid-range. The copper bulls have the firm overall near-term technical advantage. However, a 12-month-old uptrend on the daily bar chart may be stalling out. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the February high of 437.55 cents. The next downside price objective for the bears is closing prices below solid technical support at last week’s low of 384.90 cents. First resistance is seen at today’s high of 417.05 cents and then at 420.00 cents. First support is seen at 400.00 cents and then at 395.00 cents. Wyckoff’s Market Rating: 7.0.
