(Kitco News) – Gold and silver prices are trading not far from unchanged in midday U.S. trading Thursday. Early gains were erased when U.S. government bond yields started to rise again, and by solid gains in the U.S. stock market. However, losses in the precious metals are being limited by a weaker U.S. dollar index and higher crude oil prices today. April gold futures were last up $1.00 at $1,722.80 and May Comex silver was last up $0.05 at $26.18 an ounce.
U.S. Treasury bond yields appeared to have stabilized late this week but then started to drift higher again as the trading session progressed Thursday. The closely watched U.S. Treasury 10-year note yield is fetching 1.535% in midday U.S. trading. Bond yields have been rising in recent weeks on worries about problematic inflation surfacing as the major economies of the world have turned on their money spigots wide open over the past year. Still, inflation readings from the major economies are so far not running hot.
The key “outside markets” today see Nymex crude oil futures prices higher and trading around $65.80 a barrel. Meantime, the U.S. dollar index is lower today on a downside correction from recent gains.
Global stock markets were mostly higher overnight. China’s Shanghai composite index saw its biggest one-day advance since October. U.S. stock indexes are solidly higher at midday, with the Dow and S&P 500 indexes hitting new record highs. Traders and investors are in “risk-on” moods late this week after the U.S. Congress approved a $1.9 trillion stimulus package for Americans that will be signed by President Biden Friday. Also, Covid vaccinations continue to rise in the U.S., with health experts saying that all Americans who want a shot can likely get one by the end of April.
Technically, April gold futures bears have the firm overall near-term technical advantage. However, good price gains Friday and a bullish weekly high close would begin to suggest a market bottom is in place. Prices are still 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 the March low of $1,673.30. First resistance is seen at today’s high of $1,738.00 and then at $1,750.00. First support is seen at today’s low of $1,716.80 and then at Wednesday’s low of $1,705.60. Wyckoff’s Market Rating: 3.0
May silver futures bears have the slight overall near-term technical advantage. Prices are still 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 $27.50 an ounce. The next downside price objective for the bears is closing prices below solid support at the March low of $24.845. First resistance is seen at today’s high of $26.545 and then at $27.00. Next support is seen at today’s low of $25.885 and then at $25.61. Wyckoff’s Market Rating: 4.5.
May N.Y. copper closed up 1,005 points at 413.25 cents today. Prices closed near the session high. 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 the March low of 384.90 cents. First resistance is seen at this week’s high of 417.05 cents and then at 422.75 cents. First support is seen at 408.00 cents and then at today’s low of 400.95 cents. Wyckoff’s Market Rating: 7.5.
