(Kitco News) – Gold and silver prices are sharply lower in early U.S. trading Tuesday, as trader/investor risk appetite is a bit better early this week. A big drop in crude oil prices that sees Nymex futures back below $100 a barrel is also bearish for the metals markets. April gold futures were last down $35.20 at $1,925.50 and May Comex silver was last down $0.463 at $24.825 an ounce.
Global stocks markets were mostly lower overnight. The U.S. stock indexes are pointed toward mixed openings when the New York day session begins. Trader and investor risk appetite remains elevated, overall, but there are some glimmers of hope that are pressing oil and gold prices down and bond yields up. Russia-Ukraine talks are continuing despite Russia stepping up its war campaign against Ukrainian citizens. Also, reports said high-level U.S.-China talks on the matter Monday were constructive.
China has locked down more cities due to the Covid virus again spreading rapidly. That has put price pressure on raw commodity futures markets early this week, on notions of reduced demand coming from the world’s second-largest economy.
The U.S. data point of the week is the Federal Reserve’s FOMC meeting that begins Tuesday morning and ends Wednesday afternoon with a statement. It’s widely believed the Fed will raise its Fed funds rate by 0.25%. The Fed and chairman Jay Powell’s comments on the war and inflation will be closely scrutinized by the marketplace.
Traders will closely examine the latest U.S. inflation report out Tuesday morning—the producer price index for February, which is forecast up 0.9% from January. If realized, that number would be hot.
The key outside markets see Nymex crude oil prices sharply lower and trading around $97.50 a barrel. Crude prices have backed way off from last week’s 14-year highs. That strongly suggests oil prices may have put in at least near-term tops. The U.S. dollar index is lower again today. The benchmark U.S. 10-year Treasury note is presently yielding 2.11%. U.S. Treasury yields are on the rise and hit a 2.5-year high Monday.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and chain store sales reports, the Empire State manufacturing survey, the producer price index, and Treasury international capital data.
![Live 24 hours gold chart [Kitco Inc.]](/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, the April gold futures bulls have the overall near-term technical advantage. However, they are fading fast to suggest at least a near-term market top is in place. A six-week-old uptrend on the daily bar chart is now in serious jeopardy. Bulls’ next upside price objective is to produce a close in April futures above major resistance at $2,000.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at $1,950.00 and then at the overnight high of $1,956.90. First support is seen at the overnight low of $1,922.10 and then at $1,900.00. Wyckoff’s Market Rating: 6.5
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
May silver futures bulls have the overall near-term technical advantage but are fading and need to show fresh power soon to keep their edge. A six-week-old uptrend on the daily bar chart is now in jeopardy. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the March 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 $25.00 and then at today’s high of $25.315. Next support is seen at today’s low of $24.75 and then at $24.50. 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.