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Gold, silver down as risk appetite keener, oil slumps, bond yields up

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(Kitco News) – Gold and silver futures futures prices are lower in midday US trading Tuesday. Gold prices backed off from a nearly three-month high scored overnight, as risk appetite in the marketplace up-ticked Tuesday as geopolitical tensions have eased just a bit…for now. Rising US Treasury yields and sharply lower oil prices are also negatives for the precious metals on this day. April gold futures were last down $15.20 at $1,854.20 and March Comex silver was last down $0.528 at $23.32 an ounce.

The US stock indexes have got a boost and are trading higher at midday on earlier news reports that some Russian troops are backing away from the Ukrainian border. However, the Ukrainian president on Monday posted on Facebook that Russia will invade his country on Wednesday. The upshot of the recent news headlines is that the situation is still very unpredictable and the geopolitical crisis is far from abating. Still, the reports have dented bullish enthusiasm in the safe-haven metals.

Global stock markets were mixed overnight, with European shares mostly up and Asian shares mostly down.

The US data point of the day Tuesday was the latest US inflation report, the producer price index for January, which came in hot, at up 9.7% on an annual basis. However, markets paid little attention because of hot inflation and a more hawkish Federal Reserve policy have mostly been dialed into futures market prices.




The yield on the US 10-year Treasury note is currently fetching 2.04%. The key outside markets today see crude oil prices sharply down and trading around $92.00 a barrel after hitting a 7.5-year high Monday. The US dollar index is lower today.

Live 24 hours gold chart [Kitco Inc.]

Technically, April gold futures prices scored a big and bearish “outside day” down after hitting a nearly three-month high overnight. Bulls still have the firm overall near-term technical advantage. Prices are trending higher on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the November high of $1,882.50. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,821.10. First resistance is seen at last week’s high of $1,867.40 and then at $1,875.00. First support is seen at today’s low of $1,845.40 and then at $1,835.00. Wyckoff’s Market Rating: 7.0

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures prices also scored a bearish “outside day” down today after hitting a three-week high overnight. The silver bulls and bears are on a level overall near-term technical playing field. Bulls are still working on a fledgling price uptrend on the daily chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the January high of $24.755 an ounce. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at $23.75 and then at today’s high of $24.015. Next support is seen at today’s low of $23.07 and then at $23.00. Wyckoff’s Market Rating: 5.0.

March NY copper closed up 155 points at 452.30 cents today. Prices closed nearer the session high today. The copper bulls have the overall near-term technical advantage. Prices are in a choppy, two-month-old uptrend on the daily bar chart. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the February high of 470.85 cents. The next downside price objective for the bears is closing prices below solid technical support at the January low of 428.20 cents. First resistance is seen at today’s high of 455.20 cents and then at 460.00 cents. First support is seen at this week’s low of 444.40 cents and then at 440.00 cents. Wyckoff’s Market Rating: 6.0.



Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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