(Kitco News) – Gold and silver futures prices are trading sharply lower in midday U.S. dealings Thursday, due in part to a strengthening U.S. dollar index that hit a two-month high overnight and on chart-based selling pressure from the shorter-term futures traders as the technical postures for both markets have deteriorated this week. April gold futures dropped to a two-month low and prices are now trending lower. Also, the U.S. stock market bulls have made a strong recovery this week as the indexes are trading near their recent record highs—a negative for the safe-haven metals. April gold futures were last down $46.90 at $1,788.10 and March Comex silver was last down $0.814 at $26.075 an ounce.
Global stock markets were mixed overnight, with Asian shares mostly down and European shares slightly up. U.S. stock indexes are higher at midday. Trader/investor risk sentiment is upbeat this week. The Biden administration is working to get fresh stimulus funds to Americans and such will likely occur in the coming weeks.
Traders are looking ahead to Friday morning’s U.S. employment situation report for January, which is expected to show a non-farm payrolls rise of 50,000 and an unemployment rate of 6.7%. A significant miss from market expectations is likely to move the markets.
The key “outside markets” today see the U.S. dollar index higher and hitting a two-month high. Meantime, Nymex crude oil futures prices are higher and near this week’s 12-month high, trading around $56.15 a barrel. The yield on the benchmark 10-year U.S. Treasury note stands at 1.136%.
Technically, April gold futures prices hit a two-month low today. The gold bears have gained the overall near-term technical advantage. Prices are now in a four-week-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at last week’s high of $1,878.90. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,771.30. First resistance is seen at $1,800.00 and then at $1,820.00. First support is seen at today’s low of $1,784.60 and then at $1,771.30. Wyckoff’s Market Rating: 3.5
March silver futures bulls ran out of gas this week after pushing prices to an eight-year high Monday, and now they are just trying to stabilize the market. The silver bulls still have the slight overall near-term technical advantage but are fading fast. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the January high of $28.105 an ounce. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at $26.50 and then at $27.00. Next support is seen at today’s low of $25.935 and then at $25.50. Wyckoff’s Market Rating: 5.5.
March N.Y. copper closed down 160 points at 354.95 cents today. Prices closed near the session low today. The copper bulls still have the overall near-term technical advantage but have faded recently. A price uptrend on the daily bar chart has been negated and prices have been trending down for four weeks. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the January high of 373.40 cents. The next downside price objective for the bears is closing prices below solid technical support at 340.00 cents. First resistance is seen at this week’s high of 358.50 cents and then at 360.00 cents. First support is seen at last week’s low of 349.10 cents and then at 345.00 cents. Wyckoff’s Market Rating: 6.5.
