(Kitco News) – Gold and silver prices are sharply higher at midday today amid falling bond yields and weaker U.S. dollar index on this day, but mostly on corrective, short-covering bounces and some perceived bargain hunting after gold hit a 10-month low on Monday. April gold futures were last up $35.60 at $1,713.70 and May Comex silver was last up $0.776 at $26.045 an ounce.
U.S. stock indexes are sharply up at midday with bond market yields are on the retreat, which has at least temporarily boosted trader and investor risk appetite. The yield on the U.S. Treasury 10-year note was fetching 1.54% today. Big hedge fund manager David Tepper on CNBC Monday predicted the rise in U.S. government bond yields has now mostly played out. Some other analysts on TV and in the media are saying the same. However, many just think Tepper and the others are just talking their book. This 35-year market watcher thinks the inflation genie is already out of the bottle.
The marketplace is also upbeat early this week as it appears the U.S. Congress will this week pass a $1.9 trillion pandemic stimulus package for Americans, to then be signed by President Biden.
The key “outside markets” today see Nymex crude oil futures prices lower and trading around $64.00 a barrel. The oil bulls are fading this week and if price weakness continues this week, it would suggest a near-term market top is in place. Meantime, the U.S. dollar index is lower on a routine corrective pullback after hitting a 3.5-month high Monday.
Technically, April gold futures bears still 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 $1,650.00. First resistance is seen at today’s high of $1,718.70 and then at $1,725.00. First support is seen at $1,700.00 and then at this week’s low of $1,673.30. Wyckoff’s Market Rating: 2.5
May silver futures bears still have the slight 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 $26.385 and then at $27.00. Next support is seen at $25.50 and then at $25.00. Wyckoff’s Market Rating: 4.5.
May N.Y. copper closed down 970 points at 399.60 cents today. Prices closed nearer the session low. Profit taking from recent gains was featured. The copper bulls still 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 today’s high of 412.10 cents and then at this week’s high of 417.05 cents. First support is seen at today’s low of 397.20 cents and then at 390.00 cents. Wyckoff’s Market Rating: 7.0.
