EDITOR'S NOTE: Gold pulled back from its high of $2,003 an ounce, and silver fell much lower from its $26.50 resistance level. Yet gold’s uptrend remains intact while silver’s trading range lows remain supportive. In short, gold and silver prices remain steady. The Russia-Ukraine war coupled with China’s pandemic lockdown (its worst outbreak yet) continues not only to sustain volatility in the markets but to intensify the darkening outlook on global growth. With that in mind, gold is likely to challenge the $2,000 range in the coming week as investors’ flight toward safety maintains its speed and upward trajectory. The article below provides a quick dashboard overview of the main technical factors to watch as we head into next week’s heavy round of economic reporting which includes GDP, PCE, and more. Stay tuned.
(Kitco News) - Gold and silver prices are solidly higher and hit five-week highs in early U.S. trading Monday. Save-haven demand and chart-based buying are featured. June gold futures were last up $23.40 at $1,998.30 and May Comex silver was last up $0.66 at $26.365 an ounce.
Global stocks markets were mixed overnight. The U.S. stock indexes are pointed toward weaker openings when the New York day session begins. Markets in Hong Kong, Australia and much of Europe were closed for the Easter holiday Monday. Risk aversion remains elevated amid the Russia-Ukraine war that shows no signs of ending any time soon and the Covid surge in China that has locked down major cities in the world's second-largest economy. Stock traders are also focused on corporate earnings reports.
A feature in the marketplace to start the trading week is rising U.S. Treasury yields. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 2.884%. which is a more-than-three-year high. A Dow Jones Newswires headline today reads, "Sell off in Treasuries, worst in decades, rattles investors." Inflation worries and an aggressively hawkish Federal Reserve have pushed bond yields up (prices down). However, the closely watched yield curve does not see the 2-year and 10-year yields inverted as the 10-year yield remains above the 2-year.
In overnight news, China's first-quarter GDP grew by a better-than-expected 4.8%, year-on-year. That compares to a 4.0% rise in the fourth quarter of last year and the consensus forecast for a 4.6% rise in the first quarter. However, on the negative side, China's retail sales for March were down 3.5% from the same period last year. The first two months of this year saw retails sales up 6.7%, year-on-year. Home sales were down 25.6% in the first quarter.
Nymex crude oil futures prices are near steady today and trading around $107.00 a barrel. The U.S. dollar index is higher early today and near last week's two-year high.
U.S. economic data due for release Monday is light and includes the NAHB housing market index.
Source: Kitco News
Technically, the June gold futures bulls have the solid overall near-term technical advantage. 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 $1,950.00. First resistance is seen at $2,000.00 and then at $2,018.30. First support is seen at the overnight low of $1,974.40 and then at $1,962.70. Wyckoff's Market Rating: 7.5
Source: Kitco News
May silver futures bulls have the solid overall near-term technical advantage. 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 $25.00. First resistance is seen at $26.50 and then at $27.00. Next support is seen at $26.00 and then at the overnight low of $25.805. Wyckoff's Market Rating: 7.5.