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(Kitco News) – Gold and silver prices are sharply down in midday U.S. trading Wednesday, on heavy profit-taking from the shorter-term futures traders after gold futures hit a record intra-day high and silver hit an eight-month high on Tuesday. Strong losses in crude oil and other commodity markets today are also helping to pressure the precious metals markets. April gold futures were last down $53.40 at $1,989.80 and May Comex silver was last down $0.98 at $25.91 an ounce.
Key for the gold and silver markets will be if the bulls have the courage to step in and buy the big dips. One clue that market tops are in place in the gold and silver markets would be two strong down days in a row. Trading Thursday and Friday will be extra important in gold and silver, and the bulls need to step up and show some power to avoid serious near-term technical damage.
Global stocks markets were mixed overnight, with European shares mostly up and Asian shares mostly down. The U.S. stock indexes are solidly higher at midday. The U.S. indexes are seeing corrective bounces following recent losses, but are still in near-term price downtrends on the daily charts. Risk aversion remains elevated amid the ongoing Russia-Ukraine war. More and more U.S. companies are pulling away from Russia, including McDonalds and Coca Cola.
The key outside markets see Nymex crude oil prices sharply lower and trading around $111.00 a barrel. The U.S. dollar index is sharply lower today after hitting a 21-month high Monday. The benchmark U.S. 10-year Treasury note is presently yielding 1.9%. Treasury yields are on the rise at mid-week.
Technically, April gold futures bulls still have the firm overall near-term technical advantage but now appear exhausted. Prices are still in a five-week-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the record high of $2,178.80. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,950.00. First resistance is seen at $2,000.00 and then at $2,025.00. First support is seen at today’s low of $1,981.00 and then at $1,976.50. Wyckoff’s Market Rating: 8.0
May silver futures bulls still have the solid overall near-term technical advantage but appear tired now. Prices are still in a five-week-old uptrend on the daily chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at this week’s high of $27.495 an ounce. The next downside price objective for the bears is closing prices below solid support at $24.00. First resistance is seen at $26.50 and then at $27.00. Next support is seen at this week’s low of $25.465 and then at $25.00. Wyckoff’s Market Rating: 7.0.
May N.Y. copper closed down 1,305 points at 457.90 cents today. Prices closed nearer the session low today. Prices Monday scored a bearish and huge “key reversal” down on the daily bar chart, which is one clue that a market top is in place. The copper bulls still have the overall near-term technical advantage but are fading fast. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 480.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 440.00 cents. First resistance is seen at 465.00 cents and then at 470.00 cents. First support is seen at today’s low of 455.30 cents and then at 450.00 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.